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Why is supply chain management important?

Answer Posted / chaitanya

Two main reasons – money and opportunity. In the US about 10 percent of gross domestic product, or almost $1 trillion, is spent on supply chain activities. Advances in information technology (IT) and the expanding IT infrastructure are introducing new possibilities to improve service and efficiencies, and given the amount of money at stake, the opportunities are high. Some people view the IT tools that underlie supply chain management as the backbone of e-commerce.

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