What is supply chain management?
Supply chain management (SCM) is the coordinated management of everything between buying an input and delivering to the customer. The Council of Supply Chain Management Professionals (CSCMP), the US professional association for the field, defines SCM as the planning and management of sourcing and procurement, conversion and all logistics activities, including coordination with suppliers, intermediaries, third-party service providers and customers.
The key word in that definition is coordination. Logistics moves and stores goods. Supply chain decides what to buy, from whom, in what quantity, where to hold stock and on what timeline. If you want the line drawn in detail, our guide to what logistics is shows where one ends and the other begins.
A simple rule helps: any decision that affects more than one company in the chain is a supply chain decision. Switching carriers is logistics. Moving a supplier from Asia to Mexico, which changes lead time, cost, import tax and stock levels in one go, is supply chain.