What Is Supply Chain Management?

 Supply chain management is the handling of the entire process of turning raw materials into a final product. Without the supply chain, we would not have access to food and health products, or the items that allow us to work, travel and entertain ourselves. Supply chain management involves a network of suppliers connected via a centralized management process. Each supplier acts as a link that moves a product along a chain of production, from raw material suppliers to manufacturers to retailers.

In the past, the supply chain management beginning-to-end model was mostly rigid — every link in the chain was touched in consecutive order to get a product from raw materials to the consumer. But lessons from the recent disruptions highlight the importance of flexibility in the supply chain management process.

What supply chain management is today is largely a result of market evolutions, digital transformations, and changing consumer preferences. Here are a few examples:

• Different ways to buy. Consumers have many choices when purchasing products. They can buy products in physical stores or online, for example.
• Climate-conscious consumers. Consumers have become more aware of how products are manufactured. They want to know about products that are climate-friendly. This affects the initial stages of the supply chain, where manufacturers need to incorporate sustainable practices and sourcing in their operations.
• Evolving trade policies. When a manufacturer is unable to get raw materials from one supplier because of a trade policy, it must be able to adapt quickly and pivot to a new source for its raw materials.