Answer to Question #267532 in Management for zile

Question

With reference SGI, what is your understanding of supply chain integration? (20 marks

Answer 1

Silicon Graphics Inc., SGI is one of the leading manufacturers of graphics computer systems, workstations, and supercomputers. Its history may be described as an exemplary, perhaps even archetypal, Silicon Valley success story, until lower-priced competitors and inept production methods resulted in heavy losses in the late 1990s. Founded by a high school dropout turned college professor, Silicon Graphics capitalized on pioneering technology in 3-D computer graphics to create products used in a wide variety of professions, including engineering, chemistry, and film production. The company combined technological prowess with shrewd management to produce explosive growth. The core of their strategy is commitment to deliver nothing less than the highest-performing computer systems in the world, with the world's best graphics solutions. Indeed, the company is built on the notion of the ability to visualize the results of massive calculations and modeling allowing customers to gain instant insight into the problems they are trying to solve. Through their systems they are able offer solutions to companies to ease their supply chain management. This can only be done through supply chain integration for companies to smoothen their supply chain services.

Supply chain integration is the process where all the parties involved with the fulfillment of a product are integrated into a single system. All of the materials and components from along the supply chain are needed, and by integrating everything into a single system, it is much easier for effective product creation. In this era of competition among supply chains, the success of a corporation is increasingly dependent on management's ability to integrate the company's networks of business relationships. Supply chain management has been defined as the integration of key business processes, from raw-material suppliers through end users.

Supply chain integration essentially means that the information and communication systems of all stakeholders are able to seamlessly exchange information through all planning, execution and completion of transport and logistics operations throughout a product’s life time.

Supply chain integration is recognized as an important factor to attain superior supply chain performance, as it offers a host of competitive advantages – including complete transparency all the way from supplier to customer. This can easily be done with the high-end technology. By adding their solution on top of the existing solutions, an organization can get all the information needed to make the right decisions without changing or interfering with the existing IT landscape.