Three Types of SCM Definitions
Today, I present Mentzer et al.’s (2001) must-read article, Defining Supply Chain Management. The authors demonstrate that, “although definitions of SCM differ across authors […], they can be classified into three categories”: (1) SCM as a management philosophy (= supply chain orientation), which involves a systems approach to viewing the supply chain as a whole, a strategic orientation toward cooperative efforts, and a customer focus; (2) SCM as an implementation of a management philosophy, which involves seven activities such as “mutually sharing information”; and (3) SCM as a set of management processes, which includes processes such as “customer relationship management” and “order fulfillment”. The article also contains a useful definition of SCM as “the systemic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain, for the purposes of improving the long-term performance of the individual companies and the supply chain as a whole”.
Mentzer, J.T., DeWitt, W., Keebler, J.S., Min, S., Nix, N.W., Smith, C.D. & Zacharia, Z.G. (2001). Defining Supply Chain Management. Journal of Business Logistics, 22 (2), 1–25. https://doi.org/10.1002/j.2158-1592.2001.tb00001.x