What does supply chain management entail?

Supply chain management fundamentally involves the comprehensive oversight of the entire flow of goods, services, and information from the initial stage of raw materials through to the end customer. This includes the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management. Importantly, it also encompasses coordination and collaboration with channel partners, which can include suppliers, intermediaries, third-party service providers, and customers.

By managing this flow effectively, supply chain management seeks to maximize value, ensure customer satisfaction, and gain a competitive advantage in the market. This holistic approach is crucial because it recognizes that each component of the process—ranging from raw materials, manufacturing, and assembly to storage, distribution, and final delivery—plays an integral role in overall efficiency and effectiveness. Thus, the role of supply chain management is much broader than just a segment of logistics or transportation, which is why the other options do not capture the full scope of its responsibilities.