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The Contemporary Marketing Management Glossary

Supply Chain Management (SCM)

Short Definition

The management of the flow of goods, services, and information, encompassing the movement and storage of raw materials, work-in-process inventory, and finished products from the point of origin to the point of consumption.

Context

Supply Chain Management (SCM) emerged in the 1980s as an evolution of logistics management, integrating procurement, production, distribution, and customer service into a single strategic process. The concept was formalized by scholars such as Oliver and Webber (1982) and expanded by Michael Porter’s value chain framework (1985), which emphasized the interconnection between operations and competitive advantage. In Modern Marketing, SCM was often seen as an operational function focused on efficiency and cost control. However, within Contemporary Marketing Management, SCM has evolved into a strategic ecosystem that connects production, marketing, and sustainability—transforming the supply chain into a value chain.

Extended Definition

Supply Chain Management encompasses the planning, coordination, and execution of all activities involved in sourcing, manufacturing, and delivering products or services.

It aims to optimize the balance between efficiency, responsiveness, and sustainability across the entire network of suppliers, manufacturers, distributors, and customers.

The modern supply chain is characterized by:

  1. Integration – seamless coordination among multiple stakeholders and information systems.

  2. Visibility – real-time monitoring of materials, inventories, and logistics through digital tools such as IoT, blockchain, and AI.

  3. Resilience – the ability to anticipate and adapt to disruptions in global operations.

  4. Sustainability – minimizing environmental impact through circular practices, ethical sourcing, and energy efficiency.

  5. Customer-centricity – aligning supply chain design with customer expectations for speed, personalization, and transparency.

In the context of Contemporary Marketing Management, SCM serves as a bridge between value creation and value delivery.

Marketing and supply chain functions now operate in synergy: marketing shapes demand, while supply chain capabilities determine how effectively that demand can be fulfilled.

Digital transformation has further expanded this relationship, enabling data-driven forecasting, predictive logistics, and sustainable operations that reinforce brand reputation and stakeholder trust.

SCM has thus shifted from being a back-end operational process to a front-line strategic asset, influencing innovation, customer experience, and competitive differentiation.

Contemporary Example

Companies like Amazon, Zara, and Unilever illustrate the strategic importance of SCM. Amazon leverages data analytics and automation to ensure rapid delivery and inventory precision. Zara’s agile supply chain allows real-time adaptation to fashion trends, while Unilever integrates sustainability across sourcing and production to reduce its environmental footprint and strengthen brand integrity.

See also

Part of chapter: Glossary