Such extended performance measures encourage closer collaboration and coordination. Finally, organizations in a supply chain can work closely for the same goal only if the incentives of the multiple players are aligned. Incentive alignment requires mechanisms assuring that the associated risks and gains of integration efforts are equitably shared. Integrating a supply chain along the information, coordination, and organizational dimensions positions the network for ongoing success. With the integration foundation in place, the responsibilities of the members can shift dynamically based on changing customer needs.
Partners can enter and exit the network with minimal disruptions and costs.
Such evolving networks can result in much greater efficiency and responsiveness. Hau L. Lee is a professor at the Graduate School of Business and the School of Engineering at Stanford University . He is a member of Supply Chain Management Review 's Editorial Adivsory Board. Today's Supply Chain Environment 2. The Information Foundation 4.