The essence of supply chain integration is to establish a team of companies that develop an effective “chemistry” in working together so that an overall outstanding level of performance is attained. For the supply chain team to be successful, each member of the team must have a clear and well-specified role. Equally important is the need for each member of the supply chain to perform its role in an exceptional manner – better than any other firm in the supply chain. When this occurs, the supply chain achieves a high level of competitiveness.

As objectives and performance change, it is possible that a member of the supply chain no longer possesses a capability that enhances the entire supply chain's performance. Perhaps one of the other supply chain members can perform the same task at a lower cost and/or higher quality. May be the task no longer needs to be performed at all. And it is always possible that an outside firm with higher levels of performance should become a member of the...