SUPPLY CHAIN MANAGEMENT
Until the dawn of 20
century business as well as distribution channel used the traditionaldelivery process for the experience and expertise dating back to the industrial revolution era. Butthe introduction of information technology brought up a new dimension to the whole delivery process. Information technology has given business connectivity a new way of order relationshipcalled Supply Chain Management. Supply Chain Management is a process where in firmscollaborates with each other in the bid of leveraging their strategic positioning and to increasetheir operating efficiency (Bowersox, Closs, 2008).Marketing, distributing, Planning, manufacturing and purchasing was considered independentlyas not a part of supply chain during the outset of industrial revolution. Each of the processes hadtheir own set of goals and objectives and they operated independently.Marketing considered high customer service and maximization of profitable sale as their objective; Manufacturing had higher and efficient output at the lower costs as their objective etc.Thus there was a need of mechanism wherein all independent functions could be integratedtogether (Ganeshan, Harrison, 1995).Supply chain management can be viewed as a decision making process between strategy andoperation. It’s also seen as a mechanism that lies in-between this completely vertically integratedindividual firms where the whole operation takes place with the mix of coordination andeffective management. Thus supply chain is like a relay team within each team is morecompetitive and there needs to coordinate between the entire team for achieving results..