For over 18 years Supply Velocity has focused on Supply Chain Consulting. While the term Supply Chain Management has been around since the early 1990’s, its meaning has not always been clear. Some people think it is another name for purchasing; others confuse it with Logistics. Our definition of Supply Chain Management (SCM) is:

The coordination and management of materials, information and money from suppliers’ suppliers, suppliers, your firm, customers and customers’ customers to provide great service and profitably grow sales.

In addition, to clarify the difference between SCM and Logistics, we define logistics as:

The management of the supply chain within your firm, encompassing: 1) Resource and demand planning, 2) Sourcing and purchasing, 3) Production, warehousing and inventory management, 4) Delivery and 5) Managing returns.

This definition of Logistics also aligns with the Supply Chain Operations Reference (SCOR) model.

There are other definitions of Supply Chain Management but we think ours captures the spirit of the domain. It is much more difficult to implement Supply Chain Management than provide a definition. Specifically, when we are providing Supply Chain Consulting we focus on helping our clients make decisions that can improve the performance of their firm, and their supply chain. These include qualitative and quantitative supply chain and logistics decisions.