What Are the Disadvantages of Supply Chain Management?

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The primary disadvantages of supply chain management, or SCM, include complexity and costs. Because of the numerous working parts and the technology involved, companies face many chances for errors or oversights with SCM. The technological infrastructure involved in SCM also offsets some of the perceived value gained by its application.

Companies have to hire dedicated managers to oversee supply chains and to make decisions on improvements. SCM is also based on the premise of collaboration with suppliers, which makes a company reliant on partners. If a supplier fails to deliver on its commitments, a business may run out of products and lose customers.