Basic Concepts of Supply Chain Management

Basic Concepts of Supply Chain Management

Basic Concepts of Supply Chain Management

After reading this chapter you will be able to 
  • Appreciate what a supply chain is and what it does
  • Define the different organizations that participate in any supply chain 
  • Discuss ways to align your supply chain with your business strategy
  • Start an intelligent conversation about the supply chain management issues in your company
Supply chains encompass the companies and the business activities needed to design, make, deliver, and use a product or service. Businesses depend on their supply chains to provide them with what they need to survive and thrive. Every business fits into one or more supply chains and has a role to play in each of them.
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There is a difference between the concept of supply chain management and the traditional concept of logistics. 

Logistics typically refers to activities that occur within the boundaries of a single organization and supply chains refer to networks of companies that work together and coordinate their actions to deliver a product to market. 
Also, traditional logistics focuses its attention on activities such as procurement, distribution, maintenance, and inventory management. Supply chain management acknowledges all of traditional logistics and also includes activities such as marketing, new product development, finance, and customer service.



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