1. It involves thousands of suppliers, manufacturing facilities and markets. Even the slightest of changes at any part of the supply chain has significant effects on all of the other participants.
2. Inventory optimization, which is critical in cutting costs and increasing revenue, involves all the branches of the chain. The larger the supply chain, the more branches are involved. The more branches that are involved, the chance for any errors or inefficiencies to occur with in the supply chain is high.