Editing Supply chain management (section)

==Importance==
Organizations increasingly find that they must rely on effective supply chains, or networks, to compete in the global market and networked economy.<ref>Baziotopoulos, 2004 {{full citation needed|date=February 2019}}</ref> In [[Peter Drucker]]'s (1998) new management paradigms, this concept of business relationships extends beyond traditional enterprise boundaries and seeks to organize entire business processes throughout a value chain of multiple companies. According to Drucker, "the greatest change in corporate culture—and the way business is being conducted—may be the accelerated growth of relationships based not on ownership, but on partnership."<ref name=":1">{{Cite web |last1=Greenlaw |first1=Steven A. |last2=Shapiro |first2=David |last3=MacDonald |first3=Daniel |date=2022-12-14 |title=Ch. 1 Introduction - Principles of Economics 3e {{!}} OpenStax |url=https://openstax.org/books/principles-economics-3e/pages/1-introduction |access-date=2024-07-23 |website=openstax.org |language=English}}</ref> This approach allows companies to leverage the strengths and capabilities of various partners to achieve greater efficiency and innovation, ultimately enhancing overall business performance.<ref name=":1" /><ref name=":2">{{Cite web |url=https://www.ascm.org/cscp-certification/ |access-date=2024-07-23 |website=www.ascm.org}}</ref>

In recent decades, globalization, outsourcing, and information technology have enabled many organizations, such as [[Dell]] and [[Hewlett-Packard]], to successfully operate collaborative supply networks in which each specialized business partner focuses on only a few key strategic activities.<ref>Scott, 1993 {{full citation needed|date=February 2019}}</ref> This inter-organizational supply network can be acknowledged as a new form of organization. However, with the complicated interactions among the players, the network structure fits neither "market" nor "hierarchy" categories.<ref>Powell, 1990 {{full citation needed|date=February 2019}}</ref> It is not clear what kind of performance impacts different supply-network structures could have on firms, and little is known about the coordination conditions and trade-offs that may exist among the players. From a systems perspective, a complex network structure can be decomposed into individual component firms.<ref name="ReferenceA">Zhang and Dilts, 2004 {{full citation needed|date=February 2019}}</ref> Traditionally, companies in a supply network concentrate on the inputs and outputs of the processes, with little concern for the internal management working of other individual players. Therefore, the choice of an internal management control structure is known to impact local firm performance.<ref>Mintzberg, 1979 {{full citation needed|date=February 2019}}</ref>

In the 21st century, changes in the business environment have contributed to the development of supply chain networks. First, as an outcome of globalization and the proliferation of multinational companies, joint ventures, [[strategic alliance]]s, and business partnerships, significant success factors were identified, complementing the earlier "[[Just In Time (business)|just-in-time]]", [[lean manufacturing]], and [[agile manufacturing]] practices.<ref>MacDuffie and Helper, 1997 {{full citation needed|date=February 2019}}</ref><ref>Monden, 1993 {{full citation needed|date=February 2019}}</ref><ref>Womack and Jones, 1996 {{full citation needed|date=February 2019}}</ref><ref>Gunasekaran, 1999 {{full citation needed|date=February 2019}}</ref> Second, technological changes, particularly the dramatic fall in communication costs (a significant component of transaction costs), have led to changes in coordination among the members of the supply chain network.<ref>Coase, 1998 {{full citation needed|date=February 2019}}</ref>

Many researchers have recognized supply network structures as a new organizational form, using terms such as "[[Keiretsu]]", "Extended Enterprise", "virtual supply chain",<ref>Knowledge @ Wharton staff writers, [https://knowledge.wharton.upenn.edu/article/supply-chain-management-growing-global-complexity-drives-companies-into-the-cloud/ Supply-chain Management: Growing Global Complexity Drives Companies into the 'Cloud'], published 12 January 2011, accessed 19 June 2024</ref> "[[Global Production Network]]", and "Next Generation Manufacturing System".<ref>Drucker, 1998 {{full citation needed|date=February 2019}}</ref><ref>Tapscott, 1996 {{full citation needed|date=February 2019}}</ref><ref>Dilts, 1999 {{full citation needed|date=February 2019}}</ref> In general, such a structure can be defined as "a group of semi-independent organizations, each with their capabilities, which collaborate in ever-changing constellations to serve one or more markets in order to achieve some business goal specific to that collaboration".<ref>Akkermans, 2001 {{full citation needed|date=February 2019}}</ref>

The importance of supply chain management proved crucial in the 2019-2020 fight against the coronavirus (COVID-19) pandemic that swept across the world.<ref>{{cite web |last1=Saad |first1=Anne |title=Importance of Supply Chain Management |url=https://mydigitalnews.in/supply-chain-management-is-it-important-for-your-business |website=mydigitalnews.in/ |date=24 November 2022 |publisher=Cargoes By DP World |access-date=26 November 2022}}</ref> During the pandemic period, governments in countries which had in place effective domestic supply chain management had enough medical supplies to support their needs and enough to donate their surplus to front-line health workers in other jurisdictions.<ref>{{Cite web|url=https://calgaryherald.com/news/alberta-to-donate-ppe-ventilators-to-other-provinces-amid-hopeful-covid-19-trends|title=COVID-19: Alberta to donate PPE, ventilators to other provinces {{!}} National Post|last1=News|last2=Canada|work=calgaryherald |date=2020-04-12|language=en-CA|access-date=2020-04-13}}</ref><ref>{{Cite web|url=https://www.insidelogistics.ca/covid-19/alberta-sharing-ppe-with-other-provinces-158850/|title=Alberta sharing PPE with other provinces|last=Staff-56|first=Inside Logistics Online|date=2020-04-13|website=Inside Logistics|language=en-US|access-date=2020-04-13}}</ref><ref>{{Cite web|url=https://www.fda.gov/news-events/press-announcements/coronavirus-covid-19-supply-chain-update|title=Coronavirus (COVID-19) Supply Chain Update|last=Commissioner|first=Office of the|date=2020-03-27|website=FDA|language=en|access-date=2020-04-13}}</ref> The devastating COVID-19 crisis in US has turned many sectors of the local economy upside down, including the country's storied logistics industry. Some organizations were able to quickly develop foreign supply chains in order to import much needed medical supplies.<ref>{{Cite web|url=https://www.cbc.ca/news/politics/canada-building-own-ppe-supply-chain-in-china-1.5530259|title=Canada building its own PPE supply chain in China|date=2020-04-13|website=CBC News}}</ref><ref>{{Cite web|url=https://www.insidelogistics.ca/features/keeping-up-how-to-keep-your-dc-moving-during-the-pandemic/|title=Keeping up: How to keep your DC moving during the pandemic|last=Atkins-80|first=Emily|date=2020-04-03|website=Inside Logistics|language=en-US|access-date=2020-04-13}}</ref><ref>{{Cite web|url=https://european.economicblogs.org/bruegel/2020/garc%c3%ada-herrero-epidemic-tests-china-supply-chain-dominance|title=Epidemic tests China's supply chain dominance|last=García-Herrero|first=Alicia|date=2020-02-17|website=European|language=en-US|access-date=2020-04-13|archive-date=2020-09-30|archive-url=https://web.archive.org/web/20200930080315/https://european.economicblogs.org/bruegel/2020/garc%C3%ADa-herrero-epidemic-tests-china-supply-chain-dominance|url-status=dead}}</ref>

Supply chain management is also important for organizational learning. Firms with geographically more extensive supply chains connecting diverse trading cliques tend to become more innovative and productive.<ref>{{cite journal |last1=Todo |first1=Y. |last2=Matous |first2=P. |last3=Inoue |first3=H. |date=11 July 2016 |title=The strength of long ties and the weakness of strong ties: Knowledge diffusion through supply chain networks |journal=Research Policy |volume= 45|issue= 9|pages=1890–1906 |doi=10.1016/j.respol.2016.06.008 |url=https://www.rieti.go.jp/jp/publications/dp/15e034.pdf |doi-access=free }}</ref>

The security-management system for supply chains is described in ISO/IEC 28000 and ISO/IEC 28001 and related standards published jointly by the [[International Organization for Standardization|ISO]] and the [[International Electrotechnical Commission|IEC]]. Supply Chain Management draws heavily from the areas of operations management, logistics, procurement, and information technology, and strives for an integrated approach.