 Outsourcing is good when the base facility cannot produce the products effectively. The overall objective is to provide the best value of quality in products for the customer whether the production is done within the company or outsourced. For example, Wal-Mart does a lot of outsourcing to cut down on cost. They make a lot of products, as well as allow companies to come into their store and place out-sourced items on their shelves. Wal-Mart has been able to make billions of dollars by using the velocity approach and maintaining high quality products at lower cost. 
	Inventory is the third key element in the supply chain process. Management needs to know how much product they have on-hand at all times. There should be a well-balanced amount of inventory to fulfill customer satisfaction and not too much inventory to cost waste of products. Inventory allows the product to have high quality which will gain great customer service. Control levels are put into place to determine correct levels of supplies at order and reorder points. These levels are critical to the day to day operation of organizations. For example Target has a computerized system that allows management and employees to know exactly how much and any product is in the store at any given time. Once an item is purchased the computer will automatically reduce the number of product on the computer. This type of system is helpful when management needs to place new orders. Also, Wal-Mart has a system designed to allow their out-source affiliates know immediately when new products are needed in the store by using technology to count each product. Inventory is major part of the supply chain process and allows management to understand the direction the company should move in next. Procurement is the basis of inventory. Procurement is the buying of raw materials and supplies. Procurements help to define the price, quality, and manage risks. Companies manage risk by hedging. Hedging allows a certain price to be stated for a product incase of fluctuation of the price market. Inventory can be warehoused or distributed. Warehouses hold products that will not be placed in the store or used until a later time. Distribution of inventory is the act of transferring products from one location to another; for example, from the warehouse to the store or plant.
	Location is the fourth step in the supply chain process. Location is determined by the market demands and customer satisfaction. Management has to decide where plants, stores, and distribution will be located. The goal of the location is to be centered around the market in which the company nerves. For example a store should be in close proximity of their target customers; in doing so, makes the store or plant easy accessible. For example, Wal-Mart has many stores around the world. They have locations available that are easy accessible to the distributors and employees. Decisions concerning location should also take into consideration tax and tariff issues, especially in inter-state and worldwide distribution. 