We face today is no longer a simple supply and demand market, but a new technology continues to emerge, the market rapidly changing competitive environment, manufacturers and its customers, suppliers become increasingly important relationship . A good supply chain management to shorten product delivery time, reduce overall procurement costs for companies and customers to add more value. It can get not only the interest generated by the brand and other products can be differentiated and the promotion of good relations with customers to reduce the company's costs and improve relationships with suppliers, streamline business processes so that organizations focus their core capabilities.
Most managers or academic researchers all agree with this view, supply chain management is a key competitive advantage. However, if asked, more detailed definition of SCM of the same, even the most famous managers and academics will also struggled.
Supply chain management is very broad terms, often very easy to be misunderstood, in many different opinions, no complete explanation has emerged.
What is supply chain management, supply chain management is defined as a collaborative strategy, goal is to integrate upstream and downstream operations, to eliminate non-value added cost, infrastructure, time and behavior to competition for end customers better services.
To demonstrate what is and is not a SCM, the following will clarify some of the most common misconceptions;