Supply Chain Management (SCM) is of strategic importance. In the globalized world, one SCM competes with another to ensure that the right product is delivered at the right place, at the right time and at the right pricevalue as perceived by the customeras decided by the customer. As the supply chain touches a business on both endsthe suppliers on one end to the customers on the otherit is important to take a look at the prospect of value that the supply chain could generate. Value maximization should be for all the players in the supply chain and not at the expense of one or other. This paper examines the various concepts in the field of SCM like Functional vs. Innovative Supply Chain, Postponement Strategy, Demand Driven Supply Chains, the need for outsourcing and how these help in adding value to the supply chain.

As the supply chain touches a business on both ends the suppliers on one end to the customers on the other - it is important to take a look at the prospect of value that the supply chain could generate. The need for such an analysis becomes even more critical with globalization and the emergence of the global market place. A properly planned supply chain can help in adding great value to a business. The US oil major Chevron Texaco serves as a classic example. Chevron's downstream profits jumped from $290 mn to $662 mn without altering the refining capacity and the number of retail stations; all they did was, make their supply chain more predictable. To appreciate the supply chain as a value chain, the role of supply chain in a business needs to be understood.

The ultimate role of supply chain management in business is to perfectly match the supply side activities of procurement, production planning, distribution planning, production allocation, warehouse planning and inventory planning. The demand side includes activities of incoming orders and forecasts, so that all demands are met with the least cost. The product needs to be delivered at the right place, at the right time and at the price decided by customers across the globe.

Supply Chain as ValueChain, globalized world, Supply Chain Management, oduct,customers,business, suppliers, procurement, production planning, distribution planning, production allocation, warehouse planning, inventory planning,incoming orders, modern airports,information, supermarket, distribution systems, transportation, organizations, Third Party Logistics, Outsourcing, warehousing, brokerage services, freight forwarding, information technology.