What is supply chain management?

A supply chain is a collection of inter-dependent steps that, when followed, accomplish a certain objective such as meeting customer requirements. Supply-chain management is a generic term that encompasses the coordination of order generation, order taking, and offer fulfillment/distribution of products, services, or information. Numerous, independent firms and customers are involved in a supply chain (e.g., manufacturers and parts suppliers; parcel shippers, senders and receivers; wholesalers and retailers). The WWW and extranets (connected intranets) have shown a great potential in linking and managing these entities into a virtual organization. For over 20 years, EDI has promised such revolutionary gains but failed to extend its benefit to small and medium companies. The remarkable nature of electronic commerce is its power in enabling all types and sizes of firms to interact.