The supply chain management is one of the most important aspects of the business organization, and it plays a vital role in improving the effectiveness of the business organization. A successful supply chain management contributes a lot to the growth and development of the business organization. The supply chain management (SCM) has explained the virtues of the low inventory, single sourcing, timely delivery, centralized and firmly coupled procedures (Burf, 2009). There are several firms which have implemented this particular lean approach and controlled to attain impressive cost saving plus productivity gains.
Over the same time, the business organizations have started global resourcing, production, and distribution, making complex webs of interdependency between the factories, storerooms, shops and fright terminals around the globe. Consequently, with the help of these, the business organization expand their market spheres, off-shore their manufacturing unit to the countries where get lower labour cost in comparison to the parent countries. Moreover, the organizations make diversification to their supply base.
However, in this manner, the business organization has amplified the vulnerability of their supply chain management (SCM) to several different types of disturbances (Pagell, Krause and Klassen, 2008). Few of the inventories, which provided a buffer against the internal as well as external changeability, have been reduced drastically. Hence the companies keep great reliance on fewer suppliers, carriers and transport nodes and sometime reduce flexibility for rescheduling the tasks in short time.