Moving Beyond Supply Chain Visibility to Multi-Enterprise Orchestration: Virtual Vertical Integration & Supplier Collaboration Combined

Vertical integration is the merging of two businesses that are at different stages of production of a product—for example, a semiconductor fabricator and a consumer electronics manufacturer. Whereas historically firms have vertically integrated in order to control access to scarce physical resources, modern firms are internally and externally disaggregated, participating in a variety of alliances and joint ventures and outsourcing even those activities normally regarded as core.

The return of deep economic cycles and major natural disasters is making many companies reconsider vertical integration in an adapted form so that they can gain greater control of the supply chain in order to satisfy their customers’ needs.

This white paper discusses:
  • How to balance the financial advantages of outsourcing against the associated supply chain risks
  • An adapted form of vertical integration to allow companies to gain greater control of the supply chain in order to satisfy their customers’ needs
  • Technology challenges of ERP with outsourced supply chains
  • Going beyond visibility to multi-enterprise orchestration
  • An in-depth case study of how Agilent created a vertically integrated planning process

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