What is the impact of lack of coordination on the performance of the supply chain?

A lack of coordination occurs either because different stages of the supply chain have objectives that conflict or because information moving between stages gets delayed and distorted. Different stages of a supply chain may have objectives that conflict if each stage has a different owner. As a result, each stage tries to maximize its own profits, resulting in actions that often diminish total supply chain. Information is distorted as it moves within the supply chain because complete information is not shared between stages. This distortion is exaggerated by the fact that supply chains today produce a large amount of product variety. The lack of supply chain coordination leads to increased inventories, poorer product availability, and a drop in profits.