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Rhonda R. Lummus: Central Missouri State University, Warrensburg, Missouri, USA
Robert J. Vokurka: Texas A&M University, College Station, Texas, USA
Introduction to supply chain concepts
Firms can no longer effectively compete in isolation of their suppliers and other entities in the supply chain. Interest in the concept of supply chain management has steadily increased since the 1980s when companies saw the benefits of collaborative relationships within and beyond their own organization. A number of definitions have been proposed concerning the concept of "the supply chain" and its management. This paper defines the concept of the supply chain and discusses the evolution of supply chain management. The term does not replace supplier partnerships, nor is it a description of the logistics function. Industry groups are now working together to improve the integrative processes of supply chain management and accelerate the benefits available through successful implementation. The competitive importance of linking a firm's supply chain strategy to its overall business strategy and some practical guidelines are offered for successful supply chain management.
Definition of supply chain
Various definitions of a supply chain have been offered in the past several years as the concept has gained popularity. The APICS Dictionary describes the supply chain as:
1 the processes from the initial raw materials to the ultimate consumption of the finished product linking across supplier-user companies; and
2 the functions within and outside a company that enable the value chain to make products and provide services to the customer (Cox et al., 1995).
Another source defines supply chain as, the network of entities through which material flows. Those entities may include suppliers, carriers, manufacturing sites, distribution centers, retailers, and customers (Lummus and Alber, 1997). The Supply Chain Council (1997) uses the definition: "The supply chain - a term increasingly used by logistics professionals - encompasses every effort involved in producing and delivering a final product, from the supplier's supplier to the customer's customer. Four basic processes - plan, source, make, deliver - broadly define these efforts, which include managing supply and demand, sourcing raw materials and parts, manufacturing and assembly, warehousing and inventory tracking, order entry and order management, distribution across all channels, and delivery to the customer." Quinn (1997) defines the supply chain as "all of those activities...