SUPPLY CHAIN MANAGEMENT
Supply chains encompass the companies and the business activities
needed to design, make, deliver, and use a product or service.
Businesses depend on their supply chains to provide them with
what they need to survive and thrive. Every business fits into one or
more supply chains and has a role to play in each of them.
The pace of change and the uncertainty about how markets will
evolve has made it increasingly important for companies to be aware of
the supply chains they participate in and to understand the roles that
they play. Those companies that learn how to build and participate in
strong supply chains will have a substantial competitive advantage in
their markets.
• “A supply chain is the alignment of firms that bring products
or services to market.”—from Lambert, Stock, and Ellram
in their book Fundamentals of Logistics Management (Lambert,
Douglas M., James R. Stock, and Lisa M. Ellram, 1998,
Fundamentals of Logistics Management, Boston, MA:
Irwin/McGraw-Hill, Chapter 14)
“A supply chain consists of all stages involved, directly or
indirectly, in fulfilling a customer request. The supply chain
not only includes the manufacturer and suppliers, but also
transporters, warehouses, retailers, and customers themselves.”—from Chopra and Meindl in their book Supply
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ESSENTIALS of Supply Chain Management
Hugos_ch1.1.qxd 11/5/02 11:30 AM Page 2
Chain Management: Strategy, Planning, and Operations (Chopra,
Sunil, and Peter Meindl, 2001, Supply Chain Management:
Strategy, Planning, and Operations, Upper Saddle River, NJ:
Prentice-Hall, Inc. Chapter 1)
“A supply chain is a network of facilities and distribution
options that performs the functions of procurement of
materials, transformation of these materials into intermediate
and finished products, and the distribution of these finished
products to customers.”—from Ganeshan and Harrison
at Penn State University in their article An Introduction
to Supply Chain Management published at
http://silmaril.smeal.psu.edu/supply_chain_intro.html
(Ganeshan, Ram, and Terry P. Harrison, 1995,“An
Introduction to Supply Chain Management,” Department of
Management Sciences and Information Systems, 303 Beam
Business Building, Penn State University, University Park, PA)
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