Defining the total scope of supply chain management—as an association professional, advocating for supply chain professionals—is one of my biggest challenges.
@ Supply Chain Management is an excellent blog run by Chris Jacob, a senior consultant for IBM. I am a little behind on my reading, so only today did I come across his post from February 11 in which he reproduced a graphical history of logistics and supply chain management originally published bySCM-Operations.com. It is a really interesting and valuable chart; however, it fails to present supply chain management as a holistic discipline that is more than the sum of its parts.
We do not share a common definition of supply chain management across the industry. Just take a look at the various professional associations to which you belong. Procurement organizations and logistics associations alike claim supply chain management as their expertise. And to be fair, APICS, which defines supply chain management from end to end, has its roots in planning and production. Even so, the APICS Certified Supply Chain Professional designation uses the SCOR model to validate candidates’ knowledge and skills from planning through returning.
Defining supply chain management
The APICS Dictionary, 13th edition, defines supply chain management as “the design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand, and measuring performance globally.” This definition of supply chain management first appeared in the 9th edition of the APICS Dictionary in 1998. As we are in the midst of producing the 14th edition of this reference, it is a good time to ask: Is this an accurate definition of supply chain management? Does it adequately capture the scope of supply chain management today?