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The goal of supply chain management is to improve the efficiency
with which a company buys, sells and produces materials or services,
inherently reducing the costs associated with these activities.
These challenges cannot be effectively met by isolated change to
specific organizational units, but instead depend critically on
the relationships and interdependencies among different organizations
or units. Traditionally, marketing, distribution, planning, manufacturing,
and the purchasing organizations along the supply chain operated
independently and there is a need for a mechanism through which
these different functions can be integrated together.
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