Definitions of Supply Chain Management
The supply chain
management (SCM) profession has continued to change and evolve to fit
the needs of the growing global supply chain. With the supply chain
covering a broad range of disciplines, the definition of what is a
supply chain can be unclear. Often times SCM can be confused with the
term logistics management. CSCMP and the board of directors, comprised
of industry experts, created official definitions for the following
terms.
CSCMP’s Definition of Supply Chain Management
Supply
chain management encompasses the planning and management of all
activities involved in sourcing and procurement, conversion, and all
logistics management activities. Importantly, it also includes
coordination and collaboration with channel partners, which can be
suppliers, intermediaries, third party service providers, and customers.
In essence, supply chain management integrates supply and demand
management within and across companies.
Supply Chain Management – Boundaries and Relationships
Supply
chain management is an integrating function with primary responsibility
for linking major business functions and business processes within and
across companies into a cohesive and high-performing business model. It
includes all of the logistics management activities noted above, as well
as manufacturing operations, and it drives coordination of processes
and activities with and across marketing, sales, product design,
finance, and information technology.
CSCMP’s Definition of Logistics Management
Logistics
management is that part of supply chain management that plans,
implements, and controls the efficient, effective forward and reverses
flow and storage of goods, services and related information between the
point of origin and the point of consumption in order to meet customers'
requirements.
Logistics Management – Boundaries and Relationships
Logistics
management activities typically include inbound and outbound
transportation management, fleet management, warehousing, materials
handling, order fulfillment, logistics network design, inventory
management, supply/demand planning, and management of third party
logistics services providers. To varying degrees, the logistics function
also includes sourcing and procurement, production planning and
scheduling, packaging and assembly, and customer service. It is involved
in all levels of planning and execution--strategic, operational and
tactical. Logistics management is an integrating function, which
coordinates and optimizes all logistics activities, as well as
integrates logistics activities with other functions including
marketing, sales manufacturing, finance, and information technology.