The Importance of Internal Integration for a Successful External Integration of the Supply Chain

Internal and external integration in the system of supply chain management are becoming more and more important for the performance of individual companies, or in a broader context, for the performance of all companies involved in the supply chain system. In this article we will present the importance of internal integration of two or more different departments within an organization for achieving better external integration of the supply chain – integration between all cooperative members in the same supply chain. Nowadays, the importance of internal and external integration is an important issue, which enables competitiveness of companies in the global market. To fully understand the strengths and weaknesses of internal and external integration one must understand their importance for a particular company or organization, whether viewing the focal company from the internal or external perspective, i.e. from the point of view of the company or from the point of view of the entire supply chain.