Over the past few decades, globalization has had a profound impact on the ways in which businesses organize and execute their strategies. It is now quite common for suppliers, manufacturers and retailers to find themselves separated by enormous distances.

Distances notwithstanding, however, customers still expect to receive their goods as quickly as possible, which is one of the reasons for the explosion of the supply chain management (SCM) approach.

Given a basic understanding of the typical manufacturing chain, it is easier to understand the impetus behind the SCM movement. Companies want to provide their customers with the requested products or services in as timely a fashion as possible. Those same companies, however, desire to produce and ship those items as cheaply as possible while maintaining quality.