• Definitions of the supply chain and supply chain management reflecting this broader scope is:
The supply chain (SC) encompasses all activities associated with the flow and transformation of goods from the raw materials stage (extraction), through to the end user, as well as the associated information flows. Materials and information flow both up and down the supply chain.
Supply chain management (SCM) is the integration of these activities, through improved supply chain relationships, to achieve a sustainable competitive advantage.
After careful study of the various definitions being offered, Mentzer et al. propose the broad and rather general definition as follows:
Supply chain management is defined as the systematic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain, for the purposes of improving the long-term performance of the individual companies and the supply chain as a whole.
• Example on a supply chain
Business logistics management and supply chain management are difficult to be separate and they have the same mission or goals, which is getting right goods in the right place at the right time with the desired condition.
A Model of Supply Chain Management
Source: Mentzer et al., “Defining Supply Chain Management,” Journal of Business Logistics, Vol. 22, No. 2 (2001),
It is difficult, in a practical way, to separate business logistics management from supply chain management. In so many respects, they promote the same mission: To get the right goods or services to the right place, at the right time, and in the desired condition, while making the greatest contribution to the firm.
• THE SUPPLY CHAIN
Logistics/SC is a collection of functional activities (transportation, inventory control