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Introduction
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wuppliers Manufacturers Warehouses & Customers
Distribution Centers

Transportation Transportation
Costs Costs
Material Costs Transportation
Manufacturing Costs Inventory Costs Costs
‘n example of SCM for an company.
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Õlan wource Make Deliver Buy

§ncertainty is inherent to every supply chain


  Travel times
  Breakdowns of machines and vehicles
  Weather, natural catastrophe, war
  Local politics, labor conditions, border issues

The complexity of the problem to globally optimize a supply chain is


significant
  Minimize internal costs
  Minimize uncertainty
  Deal with remaining uncertainty
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‘s organizations grow increasingly cost competitive as well as trying to
increase speed of responsiveness to customer demand, systematic
approaches to supply chain management are the need of the hour.

The growth of IT has also prompted SCM in becoming a very competitive


stage of business with very low margin of error. With more delicacy companies
have to be very careful & their dependency on technology is sure to rise.