Definitions of Supply Chain Management
The supply chainmanagement (SCM) profession has continued to change and evolve to fitthe needs of the growing global supply chain. With the supply chaincovering a broad range of disciplines, the definition of what is asupply chain can be unclear. Often times SCM can be confused with theterm logistics management. CSCMP and the board of directors, comprisedof industry experts, created official definitions for the followingterms.
CSCMP’s Definition of Supply Chain Management
Supplychain management encompasses the planning and management of allactivities involved in sourcing and procurement, conversion, and alllogistics management activities. Importantly, it also includescoordination and collaboration with channel partners, which can besuppliers, intermediaries, third party service providers, and customers.In essence, supply chain management integrates supply and demandmanagement within and across companies.
Supply Chain Management – Boundaries and Relationships
Supplychain management is an integrating function with primary responsibilityfor linking major business functions and business processes within andacross companies into a cohesive and high-performing business model. Itincludes all of the logistics management activities noted above, as wellas manufacturing operations, and it drives coordination of processesand activities with and across marketing, sales, product design,finance, and information technology.
CSCMP’s Definition of Logistics Management
Logisticsmanagement is that part of supply chain management that plans,implements, and controls the efficient, effective forward and reversesflow and storage of goods, services and related information between thepoint of origin and the point of consumption in order to meet customers'requirements.
Logistics Management – Boundaries and Relationships
Logisticsmanagement activities typically include inbound and outboundtransportation management, fleet management, warehousing, materialshandling, order fulfillment, logistics network design, inventorymanagement, supply/demand planning, and management of third partylogistics services providers. To varying degrees, the logistics functionalso includes sourcing and procurement, production planning andscheduling, packaging and assembly, and customer service. It is involvedin all levels of planning and execution--strategic, operational andtactical. Logistics management is an integrating function, whichcoordinates and optimizes all logistics activities, as well asintegrates logistics activities with other functions includingmarketing, sales manufacturing, finance, and information technology.
