Supply chain management is the approaches and activities taken by an organization to enhance and promote the efficient management of its supply and distribution chain. The of supply chain management history has evolved over the past 80 years from initially labor-intensive procedures to date in the managing and engineering networks. The supply chain history management both in the operations and industrial research have their origin from organizational logistics (Drake, 2012). Primarily, the use of the words “supply chain” has been an outcome of globalization effects in the manufacturing and production processes. The change in logistics began in the 1980s in the supply chain management processes with the development of personal computers. The evolution of computers contributed tremendously in the provision of access to essential information to marketers and enhanced the graphical environment for planning.
Supply chain management impacts on the organization because it is essential to build and sustain a competitive edge, quality products and services. Therefore, organizations need to implement effective supply Chain integration and information technology which will see them gain a competitive advantage through multiple dimensions such as adequate service delivery measures, profit margins, quality of products, cost and flexibility. However, the use of supply chain management approaches alone overlooks facts that enable an organization to achieve and deliver quality and cannot be used to fulfil an organization mission. Therefore, supply chain management should be incorporated with different performance indicators to enable organizations to make informed decisions. Ultimately, an organizations performance is measured by both non-financial and financial measures. Consequently, the supply chain management practices can be implemented to impact on both the competitive advantage and organizational performance of an organization.
Drake, M. (2012). Global supply chain management. Business Expert Press.