Introduction to supply chain concepts
Firms can no longer effectively compete in isolation of their suppliers and other entities in the supply chain. Interest in the concept of supply chain management has steadily increased since the 1980s when companies saw the benefits of collaborative relationships within and beyond their own organization. A number of definitions have been proposed concerning the concept of "the supply chain" and its management. This paper defines the concept of the supply chain and discusses the evolution of supply chain management. The term does not replace supplier partnerships, nor is it a description of the logistics function. Industry groups are now working together to improve the integrative processes of supply chain management and accelerate the benefits available through successful implementation. The competitive importance of linking a firm's supply chain strategy to its overall business strategy and some practical guidelines are offered for successful supply chain management.