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Corporations that have not considered their property holdings as a primary component of
the supply chain configuration may not fully realize maximum real estate efficiency,
flexibility and profitability.
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In today’s globally competitive world, operating efficiency is the primary
focus of the corporate cost-minimization/profit-maximization equation. Many
manufactured goods are becoming commodities as new substitutes emerge. Further,
increases in speed and reliability in transportation, domestically and especially
globally, allow for freer geographic distribution of manufacturing and warehouse
facilities. Since the Industrial Revolution, supply chain management has become
increasingly prominent in corporate thinking. While companies no longer strive
for the vertical integration used by monopolies such as Carnegie Steel, maximizing
efficiency is still a growing concern. In fact, practitioners and academics
write about a day in the not-so-distant future when competition among companies
is decided not by the quality of their products or by their prices alone, but
by the relative efficiency and effectiveness of each company’s supply chain.
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