5 Steps for a Successful Integrated Supply Chain

Whether you’re manufacturing computer chips or chocolate chips, you rely on a group of suppliers to create the products of your business, and then you sell those products to specific customers. In this respect, your company, your suppliers, your customers (and their customers) form the different “links” of a supply chain. Moreover, the better you can integrate these links together, the more productive, cost-effective and competitive your business will be.

That’s where supply chain integration strategies come into play: Supply chain integration is the process of bringing your supply chain partners together — either through mergers and acquisitions or clearly-defined agreements — so you, your suppliers and your customers can function like a single, tightly running machine (instead of a mix of disparate and disorganized parts).

To help you along your path to supply chain integration, we’ve highlighted the most essential steps for integrating your supply chain like this:

DEFINE YOUR SUPPLY CHAIN INTEGRATION GOALS

It’s important to clearly define the reasons why you want the supply chain integration. Do you need to reduce purchase costs, align your business objectives with your partners, acquire a business to increase your market dominance or speed up delivery times and delivery reliability? The integration goals you define in this step should guide your entire supply chain integration process.

WHAT ARE THE KEY ROLES OF YOUR BUSINESS IN THE SUPPLY CHAIN?

What are the roles, tasks, jobs and services that your business does best? Which ones does it lack the skills, competency or ability to perform efficiently? Continue to in-source the activities and jobs your business does well, and consider out-sourcing the activities and jobs your business doesn’t perform well through supply chain partners or supply chain acquisitions.

ANALYZE THE LOGISTICS OF YOUR CURRENT SUPPLY CHAIN

It’s important to analyze the design and logistics of your current supply chain. How does information flow between your business and the different links of your supply chain? How and how quickly does cash flow between you and these partners? Identify bottlenecks, communication barriers, slow suppliers, overpriced suppliers and other problems that interfere with the efficiency and profitability of your business.

DECIDE IF YOU NEED HORIZONTAL INTEGRATION, VERTICAL INTEGRATION OR BOTH

Depending on the results of Steps 1-3 above, you’ll need to decide whether your supply chain integration goals are best achieved through horizontal integration, vertical integration or both

Horizontal integration: The process of integrating your business processes with an organization on the same level of the supply chain as yours. Imagine your company builds hard drives for laptops, and you can see the advantage of integrating your firm with another hard drive manufacturer. A horizontal integration could involve your firm purchasing the other firm to eliminate competition and immediately expand its customer base, or it could involve a partnership where each firm agrees to focus on a specific market segment or geographical region.

Vertical integration: The process of integrating different levels of your supply chain. Going back to the hard drive manufacturer example, imagine you need a specific widget to build your hard drive, but your current widget manufacturer is too expensive or always late on shipments. A vertical integration could involve your business purchasing or developing a partnership with a widget manufacturer for greater integration and efficiency to ensure a fair widget price and timely delivery.

DEFINE THE PARAMETERS OF YOUR SUPPLY CHAIN INTEGRATION

The final stage in supply chain integration involves the process of defining the parameters or depth of your integration. Smartsheet offers the following four levels of integration. These integration models go from the least amount of integration to the highest:

Baseline: A baseline integration offers the least level of integration. This model maintains siloed information within each department or “supply chain link,” and the different supply chain links work on their specific roles independently without direct information sharing—either as separate companies or as siloed departments within a single company. 

Functional Integration: All information is shared equally across the supply chain— whether the information and communication are shared between different departments of a company or between two different partnered organizations. The goal of the information sharing is to improve supply-chain efficiency.

Internal Integration: Information is shared across all departments and organizations that make up the supply chain. However, each department or organization functions as separate, independently acting unit.

External Integration: This is the highest level of integration. The model involves a consortium of departments or companies that make up a supply chain. These organizations integrate their information, business goals and operations to function as if they were a single, unified business without competing with each other.

ACHIEVE YOUR SUPPLY CHAIN INTEGRATION GOALS WITH TAYLORED SERVICES

Taylored Services is a fully integrated 3PL provider specializing in wholesale, retail and direct-to-consumer unit fulfillment. The company operates 1.5 million square feet of warehouse and distribution space within close proximity to the Gateway Ports of Los Angeles / Long Beach and Newark, NJ. 

Working with a full-service, integrated logistics provider like Taylored Services not only helps e-commerce businesses of all sizes to service customers more efficiently but also allows such businesses to scale when needed without significant investment.
Jeremy Hillpot’s background in consumer-investor fraud litigation provides a unique perspective on a vast array of topics, including event production, website technology, investments, startups, cryptocurrencies and the law. Contact Jeremy at legalwritingFINRA.com or jhillpot@legalwritingFINRA.com.

SOURCES:

https://www.smartsheet.com/integrated-supply-chain-management-vertical-and-horizontal

https://www.wallstreetmojo.com/horizontal-vs-vertical-integration/

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Carteret, NJ

Address:
800 Federal Boulevard
Carteret, NJ 07008

Size: 300,000 sqft

Technology:
• RF Technology
• Narrow aisle high bay rack system
• Apparel and Accessories
• High value storage area, secured yard
• Transload and Pool consolidation
• Omnichannel distribution

Chino, CA #1 & #2

Address:
14050 Norton Ave,
Chino, CA 91710

Size: 400,000 sqft

Major Equipment:
• Automated high speed sortation
• Locus Robotics

Technology:
• Synapse
• Warehouse Management
• Transportation Management
• Routing & Compliance
• Document Management
• Custom Reporting
• Web Portal
• Electronic Data Interchange (EDI)

Specialty:
• Apparel
• Footwear
• Accessories
• Jewelry
• Bulk Materials

Processing:
• Wholesale, Retail, DTC
• Full Case Distribution
• Cross Dock
• Transload
• Pick & Pack
• Kitting
• VAS

JONATHAN ROSENTHAL - COB

Jonathan has spent a lifetime as an entrepreneur. He started his
first company, NetAir International, in 1983. It was innovative as
the first multi-city on-demand jet charter company and grew into
the largest operation of its kind in the U.S. His second venture was
in launching Saybrook Partners, a merchant bank in 1990 and
later Saybrook Corporate Opportunity Funds in 207. Jonathan
serves in numerous leadership roles, including as founder and
chairman of the LA Harbor Performance Enhancement Center,
WherehouseIT.com, and the Harvard Graduate School Leadership
Institute. He also serves on the Marine Transportation System
National Advisory Committee, Los Angeles Sustainable Freight
Advisory Board, and the University of Southern California Center
for Supply Chain Management board of directors. He earned a B.
A. in Philosophy from California State University, Northridge, B.A.
Sc. in International Law and Legal Studies from Uppsala
University and a J.D., law from Southwestern Law School.

Jonathan is passionate about both expanding and sharing his
knowledge and expertise. He has lectured in transformational
change at the University of Chicago, UCLA, John’s Hopkins, and
Harvard College.

JOE DESAYE - CEO TFMI

Joseph DeSaye has spent over 40 years in logistics. His journey began in 1980 when he co-founded FMI International with his father and brother, specializing in air and ocean forwarding services. Together, they expanded the company to include comprehensive services that grossed over $350 million in sales.

He has a proven track record of success, growth, and leadership within the logistics industry.

THOMAS MCCORMACK - CIO

Thomas has dedicated over 20 years of his career to working in IT for 3PL companies where he has grown to deeply understand the importance of keeping pace with a dynamic and ever-changing marketplace. Prior to joining Taylored in 2014, he led IT or a $2.8 billion window manufacturer and a $1.2 billion electronic media organization. He holds a degree in accelerated mathematics/calculus from LaGuardia Community College and an MBA with a focus on computer software engineering from Fordham University.

Thomas is passionate about coaching and mentoring teams and sharing his experience in cross-functional team leadership. He knows that one of the best ways to grow an organization in today’s society is through the implementation of effective technology that allows them to stay ahead.

MIKE YUSKO - CFO

Mike overseas finance, human resources, and legal at Taylored, as well as directing Taylored’s operating companies. After over 35 years in 3PL, vitamins and supplements, consumer products, engineering, and construction, he is a man of many talents. He has served as CFO at companies ranging in size from $50-$700 million and spent 15 years at PepsiCo as the senior finance leader of a $1.2 billion beverage unit.

Mike holds a B.S. in business administration and accounting from Clarion State College. He is passionate about providing solid leadership and applying “Fortune 50” know how to elevate smaller companies.

JIM DEVEAU - CEO

Jim Deveau is a retailer at heart, with over 20 years of experience leading in the retail industry with companies such as Lord & Taylor, AnnTaylor, Charming Shoppes, and Footstar. After assisting with Footstar’s restructure in 2004, Jim transitioned into the 3PL industry. Over the next ten years, he held various C-suite positions at FMI International, Summit International Logistics, and Toll Global Forwarding before becoming Taylored’s President and CEO and board director.

Jim is passionate about sharing his knowledge. Holding an undergraduate and graduate degree from Northeastern University, together with his extensive experience, he frequently speaks at industry trade shows and conferences and has been recognized as a leader within the industry. He also currently sits on the advisory board of warehouse exchange and was chosen by the US Chamber of Commerce to represent retail trade post 9/11.

Chino, CA #1 & #2

Address:
14050 Norton Ave,
Chino, CA 91710

Size: 400,000 sqft

Major Equipment:
• Automated high speed sortation
• Locus Robotics

Technology:
• Synapse
• Warehouse Management
• Transportation Management
• Routing & Compliance
• Document Management
• Custom Reporting
• Web Portal
• Electronic Data Interchange (EDI)

Specialty:
• Apparel
• Footwear
• Accessories
• Jewelry
• Bulk Materials

Processing:
• Wholesale, Retail, DTC
• Full Case Distribution
• Cross Dock
• Transload
• Pick & Pack
• Kitting
• VAS

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Address:
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Size: 440,000 sqft

Technology:
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• Routing & Compliance
• Document Management
• Custom Reporting
• Web Portal
• Electronic Data Interchange (EDI)

Specialty:
• Apparel
• Footwear
• Accessories
• Jewelry
• Sporting Goods
• Home Goods
• Bulk Materials

Processing:
• Wholesale, Retail, DTC
• Full Case Distribution
• Cross Dock
• Transload
• Pick & Pack
• Kitting
• VAS

Miami, FL

Address:
2100 NW 129th Ave, Suite 100
Miami, Fl 33182

Size: 319,000 sqft

Technology:
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• Narrow aisle high bay rack system
• Apparel and accessories
• Transload and pool consolidation
• Omnichannel distribution

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Address:
8375 Sultana Ave
Fontana, CA 92335

Size: 225,000 sqft

Technology:
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• Accellos
• Warehouse Management
• Transportation Management
• Routing & Compliance
• Document Management
• Custom Reporting
• Web Portal
• Electronic Data Interchange (EDI)

Specialty:
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• Electronics
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Processing:
• Wholesale, Retail, DTC
• Full Case Distribution
• Cross Dock
• Transload
• Pick & Pack
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• VAS

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Address:
3355 Dulles Avenue
Mira Loma, CA 91752

Size: 540,000 sqft

Major Equipment:
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Technology:
• FoxPro
• Warehouse Management
• Transportation Management
• Routing & Compliance
• Document Management
• Custom Reporting
• Web Portal
• Electronic Data Interchange (EDI)

Specialty:
• Home Goods
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Processing:
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• Full Case Distribution
• Cross Dock
• Transload
• Pick & Pack
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Address:
2000 East Carson St.
Carson, CA 90810
Size: 294,000 sqft

Technology:
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• Warehouse Management
• Transportation Management
• Routing & Compliance
• Document Management
• Custom Reporting
• Web Portal
• Electronic Data Interchange (EDI)

Specialty:
• Furniture

Processing:
• Retail, DTC
• Full Case Distribution
• Transload
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Address:
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Size: 513,000 sqft

Technology:
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• Warehouse Management
• Transportation Management
• Routing & Compliance
• Document Management
• Custom Reporting
• Web Portal
• Electronic Data Interchange (EDI)

Specialty:
• Apparel
• Footwear
• Electronics
• Furniture

Processing:
• Wholesale, Retail, DTC
• Full Case Distribution
• Cross Dock
• Transload
• Pick & Pack
• Kitting
• VAS

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Address:
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Size: 600,000 sqft

Technology:
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• Document Management
• Custom Reporting
• Web Portal
• Electronic Data Interchange (EDI)

Specialty:
• Electronics
• Furniture
• Bulk Materials
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Processing:
• Transload
• Kitting

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Address:
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Size: 260,000 sqft

Technology:
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7501 Winstead Drive
Louisville, KY 40258

Size: 319,000 sqft

Technology:
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• Wire guided high bay rack system
• Apparel, footwear, and accessories
• Omnichannel distribution

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