Definitions of Supply Chain Management -
a clear scm concept clears the vision

Supply Chain Management is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. What is Supply Chain Management then ?


The definition of Supply Chain Management is based on two core ideas :

The first
is that practically every product that reaches an end user represents the cumulative effort of multiple organizations. These organizations are referred to collectively as the supply chain.

The second idea
is that while supply chains have existed for a long time, most organizations have only paid attention to what was happening within their “four walls.”

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.

"Supply chain 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 chain integration".


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


performance of the individual companies and the supply chain as a whole"

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