A01 chaf6542 06 se fm indd

Improved data integration between elements of the supply chain. The B2B company 

can share information with its suppliers on the demand for its products to optimise 

the supply process. Case study 6.2 on the Argos multichannel retail strategy shows the 

online sales growth that can be achieved through good integration of systems and data.

Benefit: reduced cost of paper processing.

  4 

Reduced cost through outsourcing. The company can outsource or use virtual integra‑

tion to transfer assets and costs such as inventory holding costs to  third‑  party companies.

Benefits: lower costs through price competition and reduced spend on manufacturing 

capacity and holding capacity.