PART 1:What is supply chain management?

Supply Chain Management (SCM) is an integrated approach to planning, implementing and controlling the flow of information, materials and services from raw material and component suppliers through the manufacturing of the finished product for ultimate distribution to the end customer. It includes the systematic integration of processes for demand planning, customer relationship collaboration, order fulfillment/delivery, product/service launch, manufacturing/operations planning and control, supplier relationship collaboration, life cycle support, and reverse logistics and their associated risks. These processes, which employ a combination of people, systems and technology, can be performed by the firm itself or in collaboration with external supply chain partners.
Supply chain management is strategic in orientation and recognizes that the competitive strength of a firm is not only determined by its products but also by the operations and activities that place the products into customers’ hands and provide supporting services. Efficient and effective supply chain management enhances firm performance and adds value by increasing asset utilization to gain competitive market advantage. The responsiveness and efficiency of a company’s supply chain arising from its design and management is integral to the firm’s ability to successfully compete in the global marketplace.