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Every good and service requires different components to make a final product. These components often come from different locations. Domestic supply chain management involves tracking and coordinating the flow of these components from their sources until the customer receives a final product within the same country.
A large part of supply chain management is transporting the components from their sources to each location that needs them. Finding the most efficient way to do this saves both transportation costs and ensures that each rung of your company has the supplies it needs when it needs them.
Technological advances have made it much easier to track much smaller units than before. Now, instead of just keeping track of a truck of goods, you can track the path of every individual box on the truck.
Domestic vs. International Supply Lines
In managing domestic supply lines, all the production and transporting takes place within a single set of national borders. When dealing with international supply lines, you have to make additional planning for border crossings and customs.
Micah McDunnigan has been writing on politics and technology since 2007. He has written technology pieces and political op-eds for a variety of student organizations and blogs. McDunnigan earned a Bachelor of Arts in international relations from the University of California, Davis.