Synergetic Effects of Integration in Distribution Channels (Report‪)‬

Abstract: During the last decade logistical management, directed towards the supply and transport activities in distribution channels, has developed itself into a more comprehensive management philosophy and logistics strategy, known as the supply chain. Namely, the firms, joined together in a distribution channel, form such a supply channel in order to achieve their individual and common aims more efficiently. The relationships among all the participants of a supply channel are based on cooperation, and not on power and conflicts, as it was previously the case in some traditional distribution channels. This paper is dealing with synergetic effects of integration on final business outcome of the supply chain as a whole and on business outcome of each individual participant of the chain. Key words: logistical management, supply chain, logistics strategy, supply chain management, competitive advantage.