Supply Chain Integration Based on Commerce Flow and Logistics

This article deals with problems related to the integration of commerce and logistics within a supply chain and to the coordination of this system. Commerce flow and logistics should complement each other as important components of the supply chain. For efficient operation of the supply chain, a new operating pattern concerning integrated management of commerce flow and logistics is proposed here. In this model, for the first time, commerce flow and logistics are considered together from the perspective of the cost. Through the comparative analysis of cost, it is proved that the new model reveals the tendency of supply chain integration, which is helpful to develop reasonable strategies to improve supply chain management.