Supply Chain Management : Supply Chains

831 Words Aug 4th, 2015 4 Pages
In order to answer the question of what is supply chain management we must know what a supply chain is. According to (Mentzer et al., 2001, p. 1) “Supply chain is defined as the network of organisations which are involved in different processes that produce value either in the form of products or services delivered to consumers”. A supply chain is made up of suppliers, manufactures and distributors, a good way of looking at this is the supply chain pipeline. A supply chain is seen as an enabler, this is why people are seeing this increased importance for it and realize it is the weapon of the future. A supply chain starts at the upstream stage, which is usually the sourcing of raw materials then downstream to the disposal stage (Berk, 2005)

According to (Lummus & Vokurka, 1999, p. 2) “Supply chain management is an integrating philosophy to manage the total flow of a distribution channel from supplier to ultimate customer”. The theory behind this definition looks at how supply chain management allows companies to focus on there unique skill sets and how understanding supply chain objectives and individual roles, an ability to work together, and a willingness to adapt in order to create and deliver the best products and services possible. Technology and teamwork are a huge part of supply chain management, if organisations have advanced technology and good teamwork efficiency and effective processes will be created which will create more value for the end customer, but if…

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