Most people are familiar with the concept of a supply chain, even if they don't know the term. A supply chain is simply the system that moves a product from the supplier to the customer. Supply chain management (SCM) oversees and coordinates this system to ensure that it runs smoothly and efficiently. The first step in SCM is to identify and assess the distribution channel, including all supply channel partners (manufacturers, suppliers, distributors, etc.). The next step is developing and implementing plans for managing these partners, including short-term and long-term goals.