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
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:
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Integration – seamless coordination among multiple stakeholders and information systems.
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Visibility – real-time monitoring of materials, inventories, and logistics through digital tools such as IoT, blockchain, and AI.
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Resilience – the ability to anticipate and adapt to disruptions in global operations.
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Sustainability – minimizing environmental impact through circular practices, ethical sourcing, and energy efficiency.
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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
See also
Part of chapter: Glossary