Supply chain management: An overview

Supply Chain Management (SCM) has gained momentum in the 21st century. The term “Supply Chain Management” entered the public domain when Keith Oliver, a consultant at Booz Allen Hamilton, used it in an interview for the Financial Times in 1982. It gained currency in the mid 1990. It is the management of goods and services as they flow from raw materials to the ultimate consumer. It spans all movement and storage of raw materials, work-in-progress inventory and finished goods from point -of-origin to point -of -consumption. It is also the process of planning, implementing and controlling the supply chain operations. It is an extension of logistics management. Needless to mention that the world is becoming more globalized. Globalization as well as liberalization has changed the business scenario all over the world. Advancement in information technology has reduced the national boundary concept. Business enterprises are now focusing attention on their supply chains. Supply chain means the linkage between suppliers, manufacturers and customers. To make SCM an effective one, careful attention needs to be given to some stages viz., Plan, Develop, Make, Deliver and Return. It creates net value, builds a competitive infrastructure, improves customer satisfaction, provides efficient manufacturing strategy and many more. This apart, it has some limitations too. In this backdrop, an attempt has been taken in this paper (a) to discuss about the conceptual understanding of Supply Chain Management, Supply Chain and Logistics; (b) to throw light on its importance, stages involved therein and level of activities; (c) to study the benefits and disadvantages of SCM; (d) to highlight the problems addressed by SCM and (e) to make concluding remarks.