A truly integrated supply chain does more than reduce costs. The foundation of integration is information sharing.
Coordination is the next dimension.
Then come the organizational linkages that enable sharing of risks, costs, and gains. Seven-Eleven Japan , a major retail chain in that country, has been so successful that its stock value appreciation in recent years has even surpassed that of Dell Computer , a darling of Wall Street. Of course, Dell is a legendary company in its own right, with sales, profits, and stock prices head and shoulders above its competition in a fiercely competitive and saturated market. Interestingly, Seven-Eleven Japan and Dell Computer represent two of the most innovative companies in the management of their supply chains. They both have created new ways to operate their supply chains, defined new rules of the game, and maintained supply chain excellence as part of their strategic competitive edge.