CHAPTER 3

Constitution and Network of a Supply Chain Organization

Introduction

SCM is essentially an efficient integration of labor, systems, facilities, and technologies, which affects suppliers, manufacturers, distributors, transporters, retailers, and final end-users when the materials are produced and distributed in a proper manner and in timely order. SCM also involves the coordination of key processes in a company such as order placement, order fulfillment, and purchasing, supported by marketing, finance, engineering, information systems, operations, and logistics.1 Advanced technologies enable SCM to view the complete inflow and outflow of physical materials and the corresponding intangible information anywhere in the supply chain.

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