A comprehensive definition by Stadtler describes Supply Chain Management as “the task of integrating organizational units along a supply chain and coordinating material, information and financial flows in order to fulfill (ultimate) customer demands with the aim of improving the competitiveness of a supply chain as a whole” [1]. Each stage of the supply chain process carries countless risks and any break in this chain can cause a domino effect in the system which evidentially, resounds throughout the business. Supply chain management (SCM) plays a crucial role in almost every business, making efforts to accomplish cross-functional integration. It is concerned with strategy, planning, execution, and monitoring the supply chain process to improve performance and customer satisfaction. Aside from coordinating and integrating the flows of supply chain stages both within and among companies to achieve the flow of goods and services, effective supply chain management creates the most efficient process possible and accordingly reduces overall costs.
Reference
1. Stadtler H. (2008) Supply Chain Management — An Overview. In: Stadtler H., Kilger C. (eds) Supply Chain Management and Advanced Planning. Springer, Berlin, Heidelberg.
https://doi.org/10.1007/978-3-540-74512-9_2