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The Supply Chain Viewed as a System
Under the typical customer/supplier relationship, each supplier operates in a narrow area of the total supply chain system. Without a complete understanding of how their products or services impact the final product or other suppliers in the chain, companies simply cannot offer actions for improving the system. Under the traditional supplier/customer relationship, improvements to the total system are simply not seen.
The Supply Chain Viewed as a System is an extension of our model of the Organization Viewed as a System. Utilizing the MLD model allows all participants in the supply chain to understand how they fit into the system. As a result, each supplier in the chain can take deliberate action to improve not only their performance but, the performance of total system as well.
The Supply Chain Viewed as a System model fosters a far more collaborative effort throughout the supply chain. The ultimate result is a more efficient and effective system that continuously reduces costs, increases quality and improves the profitability of all involved.