Definition of Supply Chain Management

Defining supply chain management, the council of supply chain management professionals can be referred to, which developed two definitions which were evaluated by their international members. Although a second alternative was slightly more strongly supported, the council decided to adopt the following definition (Council of supply chain management professionals, 2006):

“Supply Chain Management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be Suppliers, intermediaries, third-party service providers, and Customer. In essence supply chain management integrates supply and demand management within and across companies.”