practical perspective
Increased sophistication in customer requirements and greater competition, have pushed the industry
towards higher and higher levels of efficiency in an effort to meet customer needs and cut costs. One of
the results of this drive has been the outsourcing of goods and services to third parties, in a way that has
inexorably bonded the supply chains of operators, contractors and suppliers.

The question today is whether increased efficiency in the way individual companies are run is going to
provide the industry with the performance improvements it seeks, or whether a new approach is needed
which takes into account the whole Supply Chain.

Supply Chain Management is about managing the flow of information, materials, services and money
across any activity, in a way which maximises the effectiveness of the process. It is about introducing new
tools or revising well-known techniques in an effort to ask ourselves: "Is this the right thing to do" rather
than "Is this the best way we can continue to do the same thing". This is a continuous process, not a one-
time fix.
technical perspective
The growth of consumer knowledge across globalised economies has meant that the notion of instant
gratification by people is now a given. If companies are unable to rationalise their processes effectively,
the degree to which they will maintain competitive advantage can be seriously compromised.

Companies must deliver, and this is reflected in effective Supply Chain Management (SCM). The aim,
ultimately, is to reduce inventory and risk. Yet without an integrated solution between knowledge and It

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