There is an ever-growing need to transform supply chain management. More companies are feeling the pressure to produce high-quality products at low costs. To produce these products efficiently and effectively, companies must clearly express their needs to their suppliers; they must work to improve relationships and build partnerships. The “old ways of doing business,” in which relationships were often adversarial, no longer suffice. A partnership is the first prerequisite to attain better, faster, and cheaper results.

Improved relations between producers and purchasers can lead to lower-cost supplies and components delivered on time and on budget. The overarching goal of a quality-focused supply chain is increased customer satisfaction through the joint creation of value in the supply chain.

Supply chain optimization creates value in the following six areas:
1. Quality improvement
2. Cycle-time reduction
3. Cost of poor-quality reduction
4. Total cost-of-ownership reduction
5. Technology and innovation
6. Shared risk

Successful supply chains require that the sourcing process operates as a single, seamless entity rather than as a set of discrete processes.

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