ABSTRACT

Supply chain management (SCM) was defined by one of the earliest researchers in the area as the integration of business processes from end user through original suppliers to provide products, services, and information that add value for customers. According to The Council of Supply Chain Management Professionals (CSCMP) SCM is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. Supply chain activities cover everything from product development, sourcing and production to logistics, as well as the information systems needed to coordinate these activities. The logistics approach takes a holistic view of the movement of goods, examining the whole process from raw materials through to final consumer. Physical distribution is the process of organizing transportation that will move the goods in a timely, secure manner within a reasonable budget, taking all factors into account.