Internal integration aims to integrate communication and information systems in order to optimise effectiveness and efficiency and is achieved by businesses being structured to receive and adapt to communication and information sharing.
By adopting this, a business can minimise activities that offer no value, such as reduplication of tasks and effort, and reducing errors, lead times and improving quality. There are a number of techniques that are seen as integrated systems.These are:
- Direct Product Profitability (DDP),
- Materials Requirements Planning (MRP),
- Distribution Requirements Planning (DRP),
- Just in Time (JIT).
DDP is a way of allocating the appropriate costs and allowances to any given product. All the distribution costs (storage, transportation etc.) are allocated to a specific product rather than taking an average over a product range. Therefore the actual costs of distribution are monitored and compared to a standard cost. By doing this, areas identified as inefficient can be addressed.

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