7. Integrated supply chain

Despite fundamental conceptual advances, buffer stocks, excess capacity and long lead times are still the norm. Each production unit jealously guards its independence, even within the same company, to the detriment of tense material and information flows.

The supply chain can be long and complex, from raw material through refinery, conversion, manufacturing, distribution and retail to the consumer.

Today, while the majority of companies have focused on their core activities, market turbulence, competitive pressures and the need to constantly increase stock market value mean that tightening the links between the various links in the chain is a matter of life and death. The challenges are enormous:

• more demanding customers because they are better informed;

• ever-decreasing...