•Information from and about customers flows through the enterprise in the form of sales activity, forecasts and orders.
•Information is then translated into manufacturing and purchasing plans.
•The materials are then procured,value addition takes place along with the inventory flow ultimately resulting into transfer of ownership of finished products to the customers.
•The process of integration is not restricted to manufacturing companies alone, the retailing and wholesaling firms link physical distribution and purchasing since manufacturing is not required.
•The entire process of integration can be viewed in terms of two interrelated activities.
-Inventory flow, and
-Information flow
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