The system of organisations, people, technology, activities, information sharing and resources involved in the product or service movement along the supply chain from manufacturer to end- user customer is known to be the supply chain. Supply chain management includes the designing and managing all activities involved in sourcing and procurement, conversion, and the management of logistics (Mentzer, Stank and Esper, 2008; Papadopoulos, Gunasekaran, Dubey, and Balta, 2017). In simpler terms, the final product delivered to the end customer is transformed from natural resources, raw materials and other parts through supply chain activities (Agrell and Hatami-Marbini, 2013; Kleab, 2017). Supply chain management was initially presented as a regular scientific and managerial term in 1982 to illustrate a hierarchical system that controls material, information and flow of finances in a multi-directional network of independent organisations that are decision makers (Christopher and Holweg, 2011; Al-Odeh, 2016). The supply chain management term became widely used during the 1990s. Supply chain management has evolved in practice and theory (Houlihan, 1985). From a process-oriented or multi-functional
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perspective, supply chain management consists of planning, sourcing, production, and distribution logistics; however, it is not solely centred on any of these areas (Mentzer et al., 2008).
Since the inception of the supply chain management concept, it has been used to define the planning and control of materials, the flow of information, and the activities around logistics within the organisation and among external organisations (Cooper, Lambert and Pagh, 1997;
Papadopoulos et al., 2017). The research on supply chain management has continuously expanded in focus over the years (Burgess, Singh and Koroglu, 2006). In the initial stages of the supply chain management, the emphasis was mainly on the flow of material. However, current recent and current research delves deep into other elements of supply chain management such as risk (Colicchia and Strozzi, 2012), performance (Hassini, Surti and Searcy, 2012) and integration (Fabbe-Costes and Jahre, 2007). The focus on the flow of information, internal and external networks of relationships is also increasing (Stock, Boyer and Harmon, 2010; Papadopoulos et al., 2017), and control of supply networks (Pilbeam, Alvarez and Wilson, 2012; Kleab, 2017).
Companies are impacted by uncontrollable global competition, unpredictable customer demands and an alarming rate of technological advancement that requires companies to have the capacity to react to the market changes to establish their crucial key adequacy (Ganguly, Nilchiani and Farr, 2009; Chiang et al., 2016). The reconciling of supply and demand issues in the value chain is the responsibility of supply chain managers, this provides solutions to overcome these disruptive impacts (Rainbird, 2004; Kleab, 2017). These competencies are necessary for companies to pinpoint and communicate market changes and put together strategies to react to these changes throughout the joint supply chain (Christopher, 2000; Papadopoulos et al., 2017).
It seems as if the combining of development, demand and supply chains through the sharing of information processes and electronically-based supply chain management on various echelon levels has the tendency to grow customer – centric business strategies and improve the pestilent issue of the bullwhip effect.
Schroeder (2008) and Chiang et al. (2016) State that supply chain management comprises of series of value-added processes that seek to go with supply and demand, demand chain on the other hand emphasises on producing and controlling the quantities of many products that can be
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offered by a supply chain According to Coyle, Langley, Novack and Gibson (2013:16), SCM is viewed as “a pipeline or conduit for the efficient and effective flow of products/materials, services, information and financials from the supplier’s suppliers through the various intermediate organisations out to the customer’s customers or the system of connected networks between original vendors and the ultimate final consumer”. The ultimate customer satisfaction with both the product and service at a low cost is enhanced by an effective supply chain management. Supply chain management takes the integrated system’s approach on design, observe and control of the chain to mediate the possible dispute of individual agents in the chain to coordinate the product and service flow giving the best service to the end customer (Christopher, 2000; Papadopoulos et al., 2017).
2.2.1 Definition of Supply Chain
In general, a supply chain is also known as a system of organisations, people, technology, activities, information and tools involved in moving a product or service along the supply chain.
According to a study by Agrell and Hatami-Marbini (2013), supply chain functions change natural resources, raw materials and other parts into a finished product that is delivered to the end customer. Supply chain management takes an integrated system’s view on the design, monitoring and control of the chain. This approach serves to mediate the possible dispute of individual agents in the chain to coordinate the flow of products and services to best serve the end customer (Christopher, 2000; Gao and Li, 2018). Mentzer, Stank and Esper (2008) confirmed that supply chain management includes the planning and management of all functions involved in sourcing and procurement, conversion, and logistics management. Supply chain managers are responsible for coordinating supply and demand issues within value chains (Rainbird, 2004; Chiang et al., 2016). The growing interest in SCM has led to the development of numerous definitions (Stock et al., 2010; Gibson, Mentzer and Cook, 2005; Lambert, Cooper and Pagh, 1998).
There are specific goals to accomplish in supply chain management. Enhancing customer satisfaction and service and increasing competitiveness are two of these goals (Cao and Zhang, 2011; Delgado and Mills, 2017). Supply chain management also intends to reduce the costs and resources involved in the development of products as well as to enhance efficiency and effectiveness (Weber, Hiete, Lauer and Rentz, 2010; Delgado and Mills, 2017). Supply chain
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management also puts emphasis on lowering stock levels and relative costs (Ding, Guo and Liu, 2011), growing profits and upgrading cooperation (Droge, Vickery and Jacobs, 2012; Delgado and Mills, 2017). In this respect, it is safe to say that SCM has inevitably grown since its inception.
Many things have been modified in the growth of this process, and many supply chain management terms have been formulated. Supply chain management is a comprehensive idea, which has attracted recognition in multiple segments in the global community, which is also covered in this study. This section has reflected on the well-known terms in the field of supply chain and its management in general. The next section discusses the understanding of management information sharing and also considers the information-sharing framework, which involves the supply chain business processes.