Advantages and Disadvantages of Private Supply Chain Management Systems


Advantages and Disadvantages of Private Supply Chain Management Systems


Private supply chain management software, on the other hand, is tailored to specific industry and particular company. SCM systems are often tightly integrated a limited few suppliers and trading partners. The purposes of SCM are more of collaboration than price negotiation. The disadvantage of private supply chain software, compared with public B2B exchanges, is the cost of implementation. Many small companies who could not offer a implementation of private SCM systems, will use B2B exchanges for their supply chain management.


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