The document discusses supply chain strategies and managing supply chains. It outlines considerations for make-buy decisions and different types of vertical integration like backward, forward, and current integration. It distinguishes between supply chains, which focus on getting materials into manufacturing, and value chains, which look at all steps from raw materials to the end user. Maximizing value requires looking at the entire value-adding process as a system. Measuring effectiveness can compare information, product, and cash flow cycle times, and e-commerce can help cut costs and provide market information and flexibility.

1. Supply Chains Superfactory Excellence Program™ www.superfactory.com

5. Forms of Vertical Integration Iron Ore Steel Automobiles Distribution System Dealers Silicon Integrated Circuits Circuit Boards Computers Watches Calculators Farming Flour Milling Raw Material (Suppliers) Backward Integration Current Transformation Forward Integration Finished Goods (Customers) Baked Goods