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1.1.3 Supply chain management: The search for a definition

While this account of the evolutionary phases of supply chain management concept is not disputed, considerable dispute remain as to what should be the standard definition of supply chain management. The following reading will provide you with a good synopsis of supply chain definition related issues.

Reading 1.1

Mentzer, JT; DeWitt, W; Keebler, JS; Soonhong, M; et al (2001) 'Defining supply chain management', Journal of Business Logistics , volume 22, issue 2. [14 pages]

What is apparent is that no matter how differently various commentators have tried to frame a definition, the underlying concept is often quite common. Compare the definition of supply chain management in your text with the view of Christopher (1998) who defines a supply chain as:

A network of connected and interdependent organisations mutually and co-operatively working together to control , manage and improve the flow of materials and information from supplier to end users.

And supply chain management as:

The management of upstream and downstream relationships with suppliers and customers to deliver superior customer value at less cost to the supply chain as a whole. in order to achieve a more profitable outcome.

This concept of SCM as a business philosophy focussing on the management of relationships with the aim of delivering greater value for the end user while achieving profit for all in the chain is accepted by most practitioners. We will see that in spite of phrasing the definition in a different way and adhering to the definition of 'logistics management', the authors of our text do subscribe to this concept of relationship management.

If you look at the SCM activities listed in Reading 1.1 you will appreciate that supply chain management is, in essence, an extension of the logistics management concept. The difference lies in the much broader scope of supply chain management which encompasses strategic issues like inter-organisation coordination and cooperation. We will view a supply chain as a system of business processes and will explore the concepts of intra and inter-organisational linkages with a view to strategic competitive advantage and provision of superior customer value.

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