Supply chain management refers to the management of the movement of goods from the vendor to the eventual consumer. It also takes production into account. Some of the pioneers in the area of supply chain management and logistics have been Demming and Toyota Corporation.
Supply chain management or SCM as it is known all over the world has become a key differentiator in many industries. The number one reason is that companies want to keep costs down and pass on the benefits to the end consumer. This eases of the pressure on volumes and companies do not feel the top line pressure. Some of the key innovations in the area of SCM has come from the auto companies in Japan.