Definition of Supply Chain Management:
Supply Chain (SC) and Supply Chain Management (SCM) are described at several places in literature. Though, all reveal the general theme of material, financial and information flows coordinating between, manufacturers, supplier, distributors and customers of product and services.
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The supply chain is the network of semi-autonomous business entities and autonomous, which are involved through downstream and upstream linkages in the different procedure and activities that generates value in the form of physical products and services in the hands of the ultimate customers.
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Supply chain contains the network of organisations that linked supplier and end-users. This provides the route through which raw material is converted into finished good/services into the hand of consumers. In turn, Supply chain management, covers the "flow of goods from suppliers through manufacturing and distribution chains to the end users"
Figure: Flow of Order in a Supply Chain
The concept of supply chain management is significant as it provides a framework for the integration of, material, finance and information of the enterprise, right through the suppliers to the customers. The coordination elements of supply chain include following:
- Procurement also known as Source
- Logistics also known as Move
- Warehousing, also known as Store
- Manufacturing also known as Make
- Market also known as Sell