Now, if in this example showing only three supply chain partners , absence of a critical information among the partners, that is of production forecast at XYZ firm results into either a higher inventory level or loss of future business what would happen if the supply chain consisted of a large number of partners, a scenario normally existing for medium to large sized companies ,the world over ?

In an era of gaining competitive advantage through reduced inventories all over ,a company is going to have terrible disadvantage of having to carry unnecessary inventory for the fear of losing future business.
 

The importance of Supply Chain Management thus is in : * Reduced inventories along the chain * Better information sharing among the partners * Planning being done in consultation rather than in isolation The benefits too would be reflected in terms of : Lower costs Better customer service Efficient manufacturing Better trust among the partners leading to win-win

Process integration and other efforts result in improved quality as higher profit margins shall get reflected in creation of better facilities for manufacturing, product design research, enhanced customer service.