Review on

Impact of supply chain integration on the performance of
Bahman group By- Fateme Moshkdanian

Introduction:

Supply chain integration is widely considered by both practitioners and researchers a vital contributor to supply chain performance. The two key flows in such relationships are material and information. In this paper, researcher has investigated the integrations of both information and material flows between supply chain partners and their effect on operational performance, specifically the role of long-term supplier relationship as the driver of the integration. Using data from Bahman group managers and staffs of logistics, IT, purchase and customer services this study showed that information integration (information technology and information sharing) positively influence logistic integration and via this factor it improves performance. It also shows that long term relationship with suppliers indirectly improves performance through information and logistic integration.

About the scenario:
During the 1950s and 1960s, most manufacturers emphasized mass production as a strategy to reduce their production costs. In this environment, product development was very slow and limited to the ability of domestic producers. Bottlenecks in production lines, leading to a host of operations during the construction works were documented. On the other hand, common technology and communicating with customers and suppliers was considered unacceptable risk and little emphasis on the strategic partnership between the buyer and the supplier.
In the 1970s, introducing the concept of manufacturing resource planning, materials management, and new concepts relying on manufacturers to improve their performance within their