Principles of Supply Chain Management, Second Edition, 2nd Edition

51Supply Chains as a System

are long-term, strategic benets, whereas others are short-term, operational benets. One

recurring challenge for rms is the inability to articulate the indirect, intangible strategic

costs and benets. This point is a valid concern since supply chain professionals constantly

face the challenge of demonstrating the long-term value of supply chain initiatives to their

organizations. To create a defensible long-term competitive position through strong sup-

ply chain integration, all supply chain participants should effectively measure direct and

indirect benets and costs.

A global supply chain consists of multiple participants performing business activities

for each other. The geographical locations of supply cha