When a company faces the pressu re of excessive inventory, degraded customer service, escalatin g costs and declin in g profits, or a poor return on assets, its supply chain is out of control. On the other hand, when a company moves in to new markets or new technologies, it must have its supply chain prepared for the new business challenges and opportunities. Although there are many new supply chain concepts and fads designed to exploit the advantages of the Internet, successful companies understand that the righ t supply chain strategy is dependent on a number of factors:
▪ The strategy needs to be tailored to meet specific needs of the customers. ▪ A product with a stable demand and a reliable source of supply should not be managed in the same way as one with a high ly unpredictable demand and an unreliable source of supply.