Supply Chain Management

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SupplyChain Management


KeyConcept Explanation

Supplychain management evolved from a conventional focus that primarilydealt with purchasing and logistics – between the mid-1960s and1990s – to a more contemporary and comprehensive approach thatencompassed value creation in the new millennium (Kampstra andAshayeri, 2006: 1). Today, leading corporations perceive supply chainexcellence as being a source of competitive advantage as opposed tojust being an approach to cost reduction. These companies believeexcellent supply chain has the capacity to boost performanceimprovement in asset utilisation, customer satisfaction, costreduction, and profit generation (2006). However, to achieve thebefore-mentioned objectives, effective collaboration betweencross-functional and cross-enterprise chain entities is essential –from both an individual and collective perspective (Mentzer et al.,2001: 7). Complicated terminology is commonplace in discussions of. As a result, management’s understanding ofthe concept becomes hazy thus, limiting practical application. Thispaper attempts to make understanding of SCM easier.


Migueland Brito (2011) define as the collaborativerelationship between the various levels of the supply chain, inaddition to the practices that have been jointly agreed upon by twoor more companies. Similarly, Mentzer et al. (2006) define SCM as anapproach that focuses on the management process. According to theseauthors, supply chain processes are measured and structured sets ofactivities that have been designed to produce a specific set ofoutputs for particular markets or customers.

Inaddition to the above, Miguel and Brito (2011) assert that there isvast evidence that social, cultural, and economic aspects of everycountry affect the link between organisational performance and SCM.For example, leading companies such as Sony and Toyota Moto useheadings like ‘Environmental Sustainability,’ ‘Sustainabilityand the Environment,’ and ‘Environment Leadership’ in theirmarketing campaigns and websites (Marisa and Laan, 2010). As aconsequence, most organisations have adopted Green Supply ChainManagement (GSCM) in a bid to maintain environmental sustainability(Seman et al., 2012).

Similarto the above, the advent of the internet is also a new concept inSCM. The Internet has resulted in the innovation of informationtechnology and systems that have the capacity to facilitatecoordination between the supply chain levels, and, by extension, thevirtual integration of the whole supply chain. The before-mentionedintegration, in the framework context of Internet-enabled activities,is perceivable as e-SCM (Gimenez and Lorenco, 2008). As a result,managers have resorted to merging SCM with the Internet in a bid tofacilitate decision-making through the provision of real-timeinformation between trading partners. For example, a company such asGeneral Electric, base in the U.S., is one of the companies that haveopted to operations from physical to electric (Graham and Hardaker,2000). GE’s trading process network is an online business communitythat offers the company the opportunity to transact approximately $1billion worth of transactions with over 1,400 suppliers dispersedaround the world.

BiblicalInterpretation of SCM

Inthe book of Proverbs (11:18), a wicked individual earns deceivingwages, but the person who sows righteously reaps real rewards. Thebefore-mentioned interpretation is reflective of Green Supply ChainManagement (GSCM), which is done in a bid to maintain environmentalsustainability. A different perspective of SCM can be found in thebook of Ecclesiastes (11:6). The Bible states that one should sow hisseed in the morning and remain active even in the evening. The reasonfor this is that a high degree of uncertainty exists on what willwork and what will not work. Thus, it is prudent to consider new waysof doing business, for example, adopting the use of the Internet inSCM, even if the more conventional means work just as well.


AbuSeman,&nbspN.&nbspA., Zakuan,&nbspN., Jusoh,&nbspA., &ampShoki,&nbspM. (2012). Green : A Review andResearch Direction.&nbspIJMVSC,&nbsp3(1),1-18. doi:10.5121/ijmvsc.2012.3101

BibleHub. (2015). Proverbs 11:18 A wicked person earns deceptive wages,but the one who sows righteousness reaps a sure reward. Retrievedfrom

BibleHub. (2015). Ecclesiastes 11:6 Sow your seed in the morning, and atevening let your hands not be idle, for you do not know which willsucceed, whether this or that, or whether both will do equally well.Retrieved from

DeBrito,&nbspM.&nbspP., &amp Van der Laan,&nbspE.&nbspA. (2010). and Sustainability: ProcrastinatingIntegration in Mainstream Research.&nbspSustainability,&nbsp2(4),859-870. doi:10.3390/su2040859

Giménez,&nbspC.,&amp Lourenço,&nbspH.&nbspR. (2008). e‐SCM:internet`s impact on supply chain processes.IntJrnl Logistics Management,&nbsp19(3),309-343. doi:10.1108/09574090810919189

Graham,&nbspG.,&amp Hardaker,&nbspG. (2000). Supply‐chainmanagement across the Internet.InternationalJournal of Physical Distribution &amp Logistics Management,&nbsp30(3/4),286-295. doi:10.1108/09600030010326055

Kampstra,&nbspR.,Ashayeri,&nbspJ., &amp Gattorna,&nbspJ. (2006). Realities ofsupply chain collaboration.&nbspIntJrnl Logistics Management,&nbsp17(3),312-330. doi:10.1108/09574090610717509

Mentzer,&nbspJ.&nbspT.,DeWitt,&nbspW., Keebler,&nbspJ.&nbspS., Min,&nbspS., Nix,&nbspN.&nbspW.,Smith,&nbspC.&nbspD., &amp Zacharia,&nbspZ.&nbspG. (2001).DEFINING SUPPLY CHAIN MANAGEMENT.&nbspJournalof Business Logistics,22(2),1-25. doi:10.1002/j.2158-1592.2001.tb00001.x

Miguel,&nbspP.,&amp Brito. (2011). measurement and itsinfluence on Operational Performance.&nbspSupplyChain Management measurement and its influence on OperationalPerformance Journal of Operations and ,&nbsp4(2).Retrieved from

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