Active Internal Integration

TermiKnowledge - Supply Chain, Procurement and Inventory Terminologies
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CIOP is an end-to-end supply chain training and certification program designed and developed by supply chain practitioners and consultants. The syllabus was developed in consultation with the industry, which led to Inventory Management Body of Knowledge (IMBoK v3.0). Most of the class discussions you will hear cannot be found in any textbook rather these are all the original contribution from the developers of CIOP. For example, think about the types of inventories such as raw material, work-in-process and finished goods. Out of these three, WIP is the most difficult to sell in the market and that is one of the reasons, WIP should be controlled well. The company has a built-in capability and capacity to sell finished goods, which is their business. The second easy to sell are the raw materials as you know the suppliers, who may either buy-back or at least guide you. But in case of WIP, this is custom manufactured to suit your manufacturing processes and may not well fit any other organisation, hence you may have to sell it as a scrap.


Active internal integration is a system that integrates the operations of a business from all functional areas into one. The term active internal integration simply means that a business will use internal resources to solve problems and achieve a greater purpose. It also means that there are fewer costs and that businesses will be more successful. The active internal integration system is a structured method of linking employees operating in separate silos and locations to achieve a more cohesive result.

There are much time and money spent in implementing various systems within an organisation, from supply chain management and procurement through to HR and recruitment. In order to save time and money during the day, and minimise ongoing costs in relation to HR, recruitment and payroll, it makes sense to utilise your existing procedures and processes to build up a more integrated organisation from the bottom-up. Your business process will start to become more streamlined, less time consuming and ultimately cheaper to run.

So what exactly does active internal integration entail? When you use a business process as your basic information model, what do you mean to do? You need to build up your information models using a number of different methods - perhaps use an organisation forum to connect with employees to gain a real insight into the organisation, or utilise a standardised system such as SharePoint to make all your staff's tasks and information links easily accessible. You will then need to integrate these models into your organisation's architecture, and use active internal integration as the main way of driving forward savings throughout your organisation.

Certified Inventory Optimization Professional 

CIOP is an end-to-end supply chain certification that contains 30 modules such as Introduction to Supply Chain Management, All About Inventory, Production Planning System, Strategic Business Planning, Sales & Operations Planning, Master Scheduling, Material Requirements Planning, Demand Management, Capacity Management, Forecasting, Production Activity Control, Procurement, Order Quantities, Independent Demand Ordering Systems, Warehouse Management, Transportation Management, Supplier Relationship Management (SRM), Customer Relationship Management (CRM), Introduction to Quality, Introduction to Packaging, Introduction to Process, Lean, Six Sigma, Total Quality Management, Theory of Constraints, Supply Chain Technologies, Supply Chain Techniques, Industry 4.0, International Standards and Supply Chain Risk, Safety and Security. 

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CIOP Knowledge Series

One-Minute Supply Chain Facts

The most recent video is available here. To access the past videos in the One-Minute Supply Chain Facts Series, please click the playlist icon located on the Top-Right of the video.





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