Modern firms increasingly rely on other firms to supply goods and services instead of doing these tasks themselves. This increased level of outsourcing is leading to increased emphasis on supply chain management.
This is further explained below.
Generally, Businesses that provide legal or accounting services are examples of firms. According to the idea of the firm, businesses' primary goal should be to increase their bottom line.
In conclusion, In today's business world, it's common practice for one company to outsource production to another. The importance of supply chain management is growing as a result of the rising prevalence of outsourcing.
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