A well managed supply chain is a great strategic as well as competitive advantage to the participating organizations as it ensures the optimized utilization of their resources and delivery of a highly cost effective products or services. Use of technology also plays a very crucial role to integrate supply chain components and gives rise to a highly efficient automated system which seeks to meet the supply with demand or vice versa with the optimum utilization of resources and minimal inventory.
Supply chain management may sound like a simple process but actually it is a very complicated process which even for a simple product, involves several sub-processes, activities and variety of costs. The following video gives you a very clear picture of what actually supply chain management is: