Logistics and virtual integration

Abstract

This paper uses empirical findings, from a survey and a case study, about the three (logistics) elements that constitute a virtually integrated supply chain: chain‐wide application of postponement, extensive involvement of suppliers and distributors, and the integration of the flow of information. A virtually integrated supply chain differs from a traditional supply chain in that the flow of information is no longer a by‐product of the flow of goods but makes an integral contribution to the creation of customer relations, services offered and cross‐functional and cross‐company interfaces. It was found that information communications technologies (ICT) are critical in changing the supply chain format to become more responsive to individual customers, while involving multiple companies and functions. Challenges for the individual functions are formulated based on the findings from the two methods.