
524 Principles of Supply Chain Management
cash requirements. In the long term, failures in the outsourcing efforts may make it more
expensive to acquire the capacity needed to bring the production back into the company.
As described earlier, nancial institutions are important participants in supply chains.
Rajamani et al. (2006) describe the ow of cash throughout the world. They point out that
cash is expensive to transport, handle, and store; therefore, it is usually the least automated
of the major payment systems. Movement of cash requires careful handling to assure that
it is received where it is needed on time and securely.
In Chapter 1 ...