The paper explains the emerging discipline of Supply Chain Management (SCM), defining it and explaining how and why it takes the principle of logistics forward. It explains the concept of the value chain and the integrative role of logistics within the organization. It also explores the concepts of value adding and non-value adding time and techniques for mapping the Supply Chain (SC) processes. The SC operations of some of the leading manufacturing giants in the market such as LG, Samsung, IBM, and Ford are discussed. Irrespective of being a car assembling unit or a thinkpad assembling unit or electronics assembly unit, the process in the SC remains the same. It starts from anticipating demand in the market, order processing, procurement of Raw Materials (RM), transportation, and shipping of goods to the clients, warehouse distribution, inventory planning, picking of Finished Goods (FG), delivery of FG to the customers. Outsourcing has played a major role in increasing the profitability of the client as it would enable them to focus on their primary activities. Third Party Logistics (3PL) providers offer a varied and diversified product range and operate in various levels of the value chain ranging from courier services to inventory planning. The process of outsourcing extends further, where the 3PL providers outsource some of their activities to Fourth Party Logistics (4PL) providers. The role of Government in regulating the transfer of goods across borders is also discussed along with measures of performance of the services offered by the logistics providers. It also emphasizes the quality issues that bind them. The emerging trends in this segment are also discussed in brief.

Logistics is concerned with getting the products and services where they are needed, when they are desired. The term logistics can be defined as the process of planning, allocating and controlling financial and human resources committed to physical distribution, manufacturing, support and purchasing operations. Whereas, SCM refers to the physical network that begins with the supplier and ends with the customers. The value chain framework provides a natural link between the concepts of logistics management and SCM. The former deals with the efficient management of a static gap between demand and supply in a localized sense. In contrast, SCM tries to capture the dynamic nature of the value creation itself, and therefore aims for an effective management response over the longer run.

Managing the Supply Chain through Outsourcing, Supply Chain Management (SCM), organization, warehouse distribution, inventory planning, Fourth Party Logistics (4PL) providers, financial and human resources, logistics management, effective management.