It uses advanced technology, information management, and operations research math to plan and control an expanding complexity of factors to better produce and deliver products and services in a customer-pleasing way. It uses sophisticated mixed-integer programming, relational databases, concurrent engineering, and similar mysteriously technical tools. Though the technology may be complex, SCM's essential concepts and its operational techniques are eminently understandable. ISCM has a broad scope that includes sub-suppliers, suppliers, internal operations, trade customers, retail customers, and end users. ISCM covers the management of material, information, and funds flows.
Supply chains exist in manufacturing industries, in service industries, and in the home.
But whatever the term used, we mean the integrated process of producing value for an end user, the ultimate customer. Multi-Stage Supply Chain Supply chains come in different varieties of increasing complexity. Exhibit 1 depicts a single-stage supply chain. It incorporates the material flow functions of receiving raw material or sub-assemblies, manufacturing, distributing, and delivering. And it includes funds-handling functions because working capital in the form of payables and receivables is just as important as working capital in the form of inventory and equipment.