A new type of business entity is emerging the supply chain. A supply chain is two or more parties linked by a flow of goods, information, and funds, and it is frequently global in scope. It not only includes the organization, but also its suppliers, buyers, vendors, customers, and others with whom it interacts. Supply chain management is an interdisciplinary field that emphasizes cross-functional links and seeks to manage those links to enhance a company s competitive advantage. It involves forecasting, resource allocation, production planning, flow and process management, inventory management, customer delivery, after-sales support and service, and a host of other activities and processes familiar and basic to business.
Competitive pressures are intense.
Sophisticated techniques have been devised to expedite information flow, including on-board computers for trucks and ships, satellite tracking systems, and the electronic transmission of order and shipping information. An increasing number of companies rely on supply chain management as a key competitive weapon. Large and small businesses alike have reported astounding results, including dramatic reductions in cycle time and accelerated cash flows. An understanding of supply chain management is an asset to any manager, and there is a strong demand for specialists in the area. Managers attracted to SCM are impressed by the variety and challenges in the field, its sophisticated technology, and its importance to the overall economy and the global marketplace.