The Supply Chain is a network of companies and not necessarily a business function. Supply Chain Management is the implementation of cross-functional relationships with key suppliers and customers in that network.
It is a new business model necessary for an organization’s success and every function needs to be involved.
Management must recognize that the ultimate success of an organization depends on the ability to integrate the company’s network of business relationships in a mutually beneficial way.
The management of this network of relationships is supply chain management.
Successful supply chain management requires cross-functional integration within the firm and across the network of firms that comprise the supply chain. It is focused on the improvements in performance that result from better management of key relationships.
By understanding the supply chain management processes and how they should be implemented, management will better understand the value of more integrated supply chains and how this integration will lead to increased shareholder value and a sustainable competitive advantage.