Establishing integrated supply chains that provide end users with the materials required, in the proper quantities, at the right time and at the lowest possible cost is the aim of supply chain management. In the past, the main aim of many companies was to optimize their own performance with little or no regard for the performance of others within the greater supply chain i.e. the focus was on optimizing the internal supply chain. In the recent past the attempt has been made to optimize parts of the supply chain on a semi inter-organizational basis with the aim of improving performance/optimizing ‘pieces’ of the supply chain i.e., a manufacturer might be attempting to work together with several immediate suppliers to develop their capabilities. However, the challenge for organizations, now and in the future, is the development of synergy between multiple suppliers and customers across entire supply chains, to effectively manage the flow of materials and information, and in order to optimize the performance of the entire supply chain. Evidence of the growing importance of supply chain management is the increasing emphasis companies are placing on this, as shown in part by the appointment of board level personnel in certain firms, who have sole responsibility for supply chain management.
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