What does a lack of "supply chain integration" typically result in?

A lack of supply chain integration typically leads to higher operational costs. When different components of the supply chain operate independently rather than as a cohesive unit, it can result in inefficiencies such as duplicated efforts, miscommunication, and delays. These inefficiencies often lead to increased costs due to wasted resources, excess inventory, or missed opportunities for optimizing processes.

Moreover, without integration, companies may struggle to effectively respond to customer demands or changes in market conditions, leading to disruptions that require costly adjustments. These challenges can also hinder a company’s ability to implement cost-saving strategies, such as just-in-time inventory management or coordinated logistics, further exacerbating operational expenses.

Both increased market share and improved customer satisfaction typically arise from effective integration within the supply chain, as it allows for better service levels and responsiveness to customer needs. Similarly, streamlined communication is a direct benefit of an integrated supply chain, as it promotes better information flow among stakeholders. Thus, the absence of integration does not support these positive outcomes, reinforcing the idea that higher operational costs are the primary consequence of lack of supply chain integration.