As Dave Waters says, "Supply chain is like nature, it is all around us." Indeed, supply chain management is present in every inch of the products' movement, from raw materials to goods on store shelves. And to make it profitable, you need to organize it well: 79% of companies with high-performing supply chains get greater revenue growth than the average for their industry.
This article explores the details of supply chain management — the software that drives it, the processes that define it, and the roles that make it function. We'll examine common challenges businesses face and highlight how custom supply chain software offers solutions to fix issues and drive growth in ways you couldn’t even imagine possible. Let’s dive in!
What is supply chain management?
Supply chain management (SCM) is a a strategic approach to managing the entire journey of products through various stages of creation, transportation, and distribution. Concepts that define SCM:
- Movement tracking. Supply chain management involves tracking and managing the movement of materials, information, and resources across multiple organizations and production stages.
- Strategic coordination. Supply chain management differs from operations management by providing a broader perspective that connects multiple organizational functions and external partners.
- End-to-end visibility. The process creates a transparent view of product development, from raw material acquisition to final product delivery.
- Cross-functional integration. Supply chain management promotes communication and collaboration across procurement, production, logistics, and customer service departments.
- Dynamic adaptability. The system continuously adjusts to market changes, technological developments, and evolving customer requirements.
How is supply chain management different than operations management? Operations management focuses on internal processes and efficiency within a single company, while supply chain management includes external networks, multiple businesses, suppliers, and the entire product lifecycle.
Supply management vs supply chain management are not the same, too. Supply management is about acquiring resources at the best price and quality. Supply chain management includes supply management but also integrates procurement, production, logistics, and planning.
What about ERP vs supply chain management? Enterprise resource planning provides software for managing internal business processes, financial reporting, and resource allocation. Supply chain management is a broader approach that may use ERP systems but also includes external coordination, demand forecasting, supplier relationships, and end-to-end product flow.

The importance of supply chain management
Today, supply chain management has turned from a back-office function to a critical driver of success. The global supply chain management market is expanding – experts project a steady climb from $15.58 billion in 2020 to $30.91 billion by 2026. This trajectory is caused by the complexity and frequent changes in global supply and demand patterns, as well as technological progress.

Recent data reveals a shift in how businesses perceive and prioritize their supply chain capabilities. 73% of supply chains face pressure to improve delivery capabilities and 37% of companies changed their operating models in 2023.
- B2B supply chain management complexity
Business-to-business supply chains have become increasingly complex and interconnected. Companies now recognize that strategic supplier relationships can dramatically impact bottom-line performance. By optimizing supply chain management, businesses enhance collaboration and create more resilient operational networks.
- Cost optimization
Businesses with optimal supply chains achieve 15% lower supply chain costs. You need to strategically allocate resources for maximum efficiency. Over half of business leaders acknowledge their supply chain needs significant improvements — the right supply chain tools and techniques help achieve them.
- Technology integration
The tech revolution has fundamentally reshaped supply chain strategies. 76% of businesses have installed advanced planning and scheduling systems, while 55% of manufacturers prioritize supply chain visibility. This technological transformation enables real-time tracking, predictive analytics, and more responsive business models.
- Customer service
A 2019 Gartner survey found that over 60% of supply chain leaders prioritized developing and integrating customer experience metrics across all business units. Modern supply chains are about creating seamless customer experiences. With customer relationship management and supply chain management, businesses can anticipate needs, personalize interactions, and build lasting customer loyalty.
- Better route planning
Intelligent supply chain route optimization reduces transportation costs, minimizes environmental impact, and accelerates delivery times. For instance, Route optimization, a common feature in supply chain management systems, uses advanced fuel routing and management software to cut fuel costs by up to 30%. Businesses create more efficient, sustainable supply networks wth data analytics and advanced routing technologies.
As supply chains continue to evolve, they represent more than logistical networks — they are strategic assets that can define a company's competitive position.
Types of supply chain models
Supply chain models serve as blueprints that businesses use to navigate the complex and diverse range of product movement and logistics. Each model represents a unique approach to managing resources, responding to market demands, and optimizing operational efficiency.
- Continuous flow model
For industries with stable, predictable markets, this traditional model ensures consistent product movement. Supply chain planning and control become critical in maintaining a steady flow of uniform goods, allowing manufacturers to align systems precisely with market expectations.
- Agile model
Specialized for businesses handling unique or complex products, this model emphasizes expertise over volume. Companies can charge premium prices for specialized logistics services, focusing on precision and customized handling rather than mass production.
- Custom-configured model
A hybrid approach combining flexibility and structured production, this model suits businesses requiring specific assembly and production setups. It's particularly useful for prototype development and small-batch manufacturing, though it typically demands additional investment compared to more traditional approaches.
- Fast chain model
Designed for rapidly evolving industries like fashion and technology, this model prioritizes speed and trend responsiveness. Businesses using this approach must develop sophisticated supply chain and procurement management strategies to adapt quickly to changing market conditions.
- Flexible model
The most adaptable model allows businesses to scale operations dynamically. During peak seasons, companies can expand capacity, and during slower periods, they can contract efficiently. Success depends on advanced management software and a workforce skilled in navigating complex operational shifts.
The ultimate goal is selecting a supply chain model that transforms logistical challenges into competitive advantages, aligning perfectly with an organization's unique operational requirements and strategic vision.