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Article: Unleashing the value in the supply chain.(supply chain management)
- Article from:
- Strategic Finance
- Article date:
- January 1, 2001
- Author:
CopyrightCOPYRIGHT 2001 Institute of Management Accountants. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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In their mad dash to increase profits, companies today face two major challenges: satisfy each customer's diverse needs and wants, and keep costs as low as possible. The two seem at odds with each other. But an increasing number of businesses are using a customer-driven approach to supply chain management (SCM) to rise up to both challenges.
Many financial managers still view supply chain management primarily as a mechanism to improve profits through cost containment. It's a rare company that can improve long-term profitability as well as its competitive position in a growing economy through cost cutting alone. In fact, if cost cutting goes too far, businesses may ...