The paradigm of supply chain management was first developed as a management tool in the USA, theorists having studied Japanese business practices and their non‐confrontational ways of conducting exchanges, and their emphasis on just‐in‐time distribution. The concept of SCM builds on the theories of the firm, especially transaction cost economics, Porter’s value chain optimization and the networking approach, and has become established as a useful business paradigm. SCM is seen as one element of efficient consumer response, which takes as its starting point how best to serve the consumer.