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Shortened product life cycles, increased competition, and heightened
expectations of customers have forced many leading edge companies
to move from physical logistic management towards more advanced
supply chain management. Additionally, in recent years it has become
clear that many companies have reduced their manufacturing costs
as much as it is practically possible. Therefore, in many cases,
the only possible way to further reduce costs and lead times is
with effective supply chain management.
In addition to cost reduction, the supply chain management approach
also facilitates customer service improvements. It enables the management
of inventories, transportation systems and whole distribution networks
so that organizations are able to meet or even exceed their customers'
expectations.
To simplify the concept, supply chain management can be defined
as a loop: it starts with the customer and ends with the customer.
All materials, finished products, information, and even all transactions
flow through the loop. However, supply chain management can be a
very difficult task because in the reality, the supply chain is
a complex and dynamic network of facilities and organizations with
different, conflicting objectives.
What has then enabled the effective implementation of supply chain
management? The answer is found from the rapid developments in information
and communications technologies. Use of databases, communication
systems, and foremost advanced computer software are crucial for
the development of a modern cost-effective supply chain management.
With ScWare Supply Chain Management solution, companies are able
to plan, implement, optimize, and control their supply chains better
than ever before. In the end, without comprehensive and flexible
modeling and analyzing software such as ScWare Supply Chain Management
solution, the management of the dynamic and complex supply chain
environment would be more or less impossible.
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