Few businesses understood, much less
managed, the entire chain of activities that ultimately
delivered products to the final customer. The result was
disjointed and often ineffective supply chains.
management, then, is the active management of supply chain
activities to maximize customer value and achieve a sustainable
competitive advantage. It represents a conscious effort by the
supply chain firms to develop and run supply chains in the most
effective & efficient ways possible". Supply chain activities cover everything from product
development, sourcing, production, and logistics, as well as the
information systems needed to
coordinate these activities.
The Institute for Supply Management describes supply
chain management as "the design and
management of seamless, value added processes across
organizational boundaries to meet the real needs of the end
customer. The development and integration of people and
technologiescal resources are critical to successful supply
Supply Chain Management is the process of planning, implementing
and controlling the operations of the supply chain with the purpose
of satisfying the customer's requirement as efficiently as possible.
Supply Chain spans all movement and storage of raw materials ,
Work-in-process , inventory and finished goods from the point of
origin to the point of consumption.
According to the CSCMP , a professional association, that developed the
definition, "Supply Chain Management
encompasses the planning and management of all activities
involved in sourcing and procurement, conversion and all
logistics management activities.
It also includes coordination and
collaboration with channel partners which can be suppliers ,
intermediaries , third party service providers and
customers. In essence, Supply chain management integrates
supply and demand management within and across companies."
The Supply Chain Council defines it as "managing
supply and demand, sourcing raw materials and parts,
manufacturing and assembly, warehousing and inventory
tracking, order entry and order management, distribution
across all channels, and delivery to the customer".
The council of Logistics Management defines supply
chain management as
"the systemic, strategic
coordination, of the traditional business functions and the
tactics across these business functions within a particular
company and across businesses within the supply chain for
the purpose of improving long-term