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Chapter 10

4.6 Benefits and problems

 reduces labour costs  increased IT risks

 lower inventories  staff resistance

 fewer stockouts  cost savings are not automatic

 better control over product  needs to integrate with other
development systems

 greater choice of supplier  requires specialist skills

 reduced admin  expensive set-up costs

 enhanced competitive advantage

Illustrations and further practice

Now read illustration 6 and try TYU question 5.

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