There are many reasons for the popularity of the supply chain or the supply chain management concept. Through globalisation, entities are forced to look for more effective ways to coordinate the flow of goods and material between facilities, into and out of the business. Customers are consistently demanding products that are delivered faster, exactly on time, and with no damage. Supply chain management is the systemic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular entity and across businesses within the supply chain, for the purpose of improving the long-term performance of the individual entities and the supply chain as a whole. One key objective of supply chain management is to lower the costs required to provide the necessary level of customer service, in order to gain a competitive advantage within a market segment. To be fully effective in today's competitive environment, entities must expand their integrated behaviour to incorporate customers and suppliers. Low cost and differentiated service help build a competitive advantage for the supply chain.
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