Question

What is Supply Chain Management (SCM)? How is SCM different from Logistics? How do companies use SCM and logistics to gain a competitive advantage? Is Suppy Chain Management more important today than it was 20 years ago? Explain

Answer 1

Supply chain management is the process of transferring goods or services from the very initial stage of raw material procurement to transfer of finished products. Supply chain management is the total process which involves all the stages whereas logistics is only the stage in which the products are carried from the warehouse to the customer or while bringing the finished product from one warehouse of another.

The way of doing business has changed a lot from what it was few years back and in order to be successful organizations today have supply chain management process internally so that they do not have to rely on other organizations or groups for the same. As the level of competition in terms of quality and quantity are huge, Organizations need to manage and maintain the same for having a competitive edge over the competition uh the industry.

I believe that supply chain management was important 20 years back and even today as well although as the competition and expectation of customers are huge today, supply chain management needs to be playing a better role and needs to have a better impact as well.