The term Coordination means tasks which are intended for improving the total supply chain profits by various agents. This also involves tasks to stop things that might hurt both local profits and total profits. So it is important to coordinate with the various sections in Supply Chain Management to increase the profits of the organization. Improper coordination in Supply Chain Management creates large amounts of products in the store or shortage of products. Lack of coordination can contribute to the following aspects
It will increase the cost involved in the manufacturing of products
It will increase the cost involved in the inventory of the products
It will increase the lead times for replenishment in the supply chain.
It will increase the cost involved in transportation
It will increase the cost associated with labours in shipping and receiving of the products at various locations.
It will reduce the availability of the products whenever there is high demand.
It will lead to problems inside the relations and all the people inside the supply chain thinks they have done it right
So the fundamental thing to be considered in Supply Chain Management is ensuring the coordination activities.