This article defines the supply chain and identifies the scope and need for supply chain management.


Supply Chain is also known as the Value Chain or a Demand Chain. This system that consists of organizations, information, resources, people, technology and activities that bring products or services from a supplier to a consumer is called as a supply chain.


A company’s supply chain flow consists of: suppliers from whom the company gets the raw materials, the procurement department, the production department, the distribution department and finally the end customer.


Identifying the supply chain and the flow of goods and information allows companies to develop more efficient systems.

Supply Chain Management

Supply Chain Management is often defined as the integration of key business processes from the end users to the original suppliers. Information sharing across the different organizations is a critical part of supply chain management.


Supply chain management covers key business processes related to customer relationship management, demand management, manufacturing flow, procurement and product development.


Improvements in Supply Chain Management is constantly evolving over the decades to include web based information portals, automated system and delivery on demand strategies.