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The IMC identifies three integration mechanisms [2] that span the management dimensions and ensure the alignment between them. These integration mechanisms are defined as meta-integration, vertical integration, and horizontal integration.
The Sales and Operations planning process has a twofold scope. The first scope is the horizontal alignment in order to balance the supply and demand through integration between the company departments and with suppliers and customers. The second aim is the vertical alignment amid strategic plan and the operational plan of a company. [2]
Aligning common interests, avoiding task duplications, reducing costs, increasing productivity and achieving a coherent line of action, in order to provide desired results, are some elements that stimulate the improvement of vertical and horizontal coordination of different government departments and public institutions.
Multi-echelon extensions are also conceivable, however, sparse in the literature. When the coordination is within a supply chain (typically a customer-supplier relation), it is called vertical, otherwise horizontal. An example for the latter is when different suppliers of the same customer coordinate their transportation.
Vertical collaboration is the collaboration when two or more organizations from different levels or stages in supply chain share their responsibilities, resources, and performance information to serve relatively similar end customers; while horizontal collaboration is an inter-organizational systemrelationship between two or more companies at ...
Tapered integration is a term from organization theory that refers to a mix of vertical integration and market exchange. [1] Upstream, a producer might manufacture some of the input itself and buy the remaining portion from independent firms.
Vertical integration can be desirable because it secures supplies needed by the firm to produce its product and the market needed to sell the product, but it can become undesirable when a firm's actions become anti-competitive and impede free competition in an open marketplace. Vertical integration is one method of avoiding the hold-up problem.
Strategic alignment is a process that ensures an organization's structure, use of resources (and culture) support its strategy. "In its simplest form, organizational ...