What is Supply Chain Management?

Today's global marketplace is creating growing pressure on managers to find new ways to create value for their customer and to deliver greater profits. Downsizing, right sizing and business process re-engineering have all been used in the past to find ways of extracting more profits and improve value.

It is in this environment of greater competition that executives are starting to realise the contribution logistics and the broader concept of supply chain management actually bring to their organisations. There is a growing understanding that by fully understanding and correctly managing their supply chain and all of its broader concepts that the two goals of cost reduction and service enhancement are actually achieved. It is through the skilled management of this area of the business that executives can actually deliver a sustainable competitive advantage.