9.1 Introduction

We have seen in earlier chapters that supply chain management attempts to bring synergy in all aspects of business with a system wide approach. We have further seen that the traditional concept of logistics management has given way to a much wider concept of supply chain management which focuses on 'optimisation' of the entire supply chain - from the source of raw material to the source of consumption. The rationale and justification of this concept have been elaborated in the previous chapters with many examples and we have seen that leading companies have secured superior competitive positions by adopting this philosophy. The practical dimensions of this philosophy were seen in the form of integration of business processes, adoption of strategic partnering strategies, integration of information systems and an overall business culture of customer value creation. The resulting gains from this approach were seen in the form of reduced inventory level, better customer response and overall system wide cost reduction. In view of the overwhelming evidence supporting the positive impacts of these supply chain initiatives, it is justifiable to accept this approach as a part of corporate business culture. But the problem lies in the new model of the supply chain in this era of globalisation. In this chapter we will look at these emerging issues in the management of global supply chains.

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