<P> The primary objective of SCM is to fulfill customer demands through the most efficient use of resources, including distribution capacity, inventory, and labor . In theory, a supply chain seeks to match demand with supply and do so with the minimal inventory . Various aspects of optimizing the supply chain include liaising with suppliers to eliminate bottlenecks; sourcing strategically to strike a balance between lowest material cost and transportation, implementing just - in - time techniques to optimize manufacturing flow; maintaining the right mix and location of factories and warehouses to serve customer markets; and using location allocation, vehicle routing analysis, dynamic programming, and traditional logistics optimization to maximize the efficiency of distribution . </P> <P> The term "logistics" applies to activities within one company or organization involving product distribution, whereas "supply chain" additionally encompasses manufacturing and procurement, and therefore has a much broader focus as it involves multiple enterprises (including suppliers, manufacturers, and retailers) working together to meet a customer need for a product or service . </P> <P> Starting in the 1990s, several companies chose to outsource the logistics aspect of supply chain management by partnering with a third - party logistics provider (3PL). Companies also outsource production to contract manufacturers . Technology companies have risen to meet the demand to help manage these complex systems . </P> <P> There are four common supply chain models . Besides the three mentioned above, there is the Supply Chain Best Practices Framework . </P>

Who needs to be involved in supply chain management