
	Supply chain management is the stream of processes of moving goods from the customer order through the raw materials stage, supply, production, and distribution of products to the customer. The term supply chain management was invented in 1982 by Keith Oliver, a consultant. Keith Oliver described the overall process of planning, implementing, and controlling what goes on at the supply chain in order to satisfy customers’ needs in a quick, efficient manner.  There are six key elements to a supply chain: production, supply, inventory, location, transportation, and information. Managers of business use these six key elements to provide the best customer service to customers. 
	Production is the first step in the supply chain process. Production is the foundation for the entire supply chain process. The production stage will outline the when, why, where, and how everything will be produced. Managers need to know what customers want. In order for managers to know what customers want, managers can look at the market. The market is the biggest indicator to decide what the customer demands are.  Once Managers have analyzed the market and understand customer’s demand they are ready to decide what products should be produced, and how many of those products should be produced. After the management has decided what is produced and how many, they are ready to decide where the products should be produced and at which plant will be best for volume and quality of good, keeping in mind the customer demand and satisfaction must be met.  After the location for production of the products has been decided, the next step is managers’ focus on scheduling workloads, and maintenance of equipment. Production is a very important step in the supply chain process.  Every detail is vital throughout the whole process. If every detail is not planned accordingly, it could cost the company a lot of time and money in the long run. For example, I use to work at Wal-Mart and Target retail stores. Both companies have a design, booklet, and process for every entity of the business. There is a designed layout of how an employee’s uniform should look to receiving shipment from trucks. Having outlined processes allow a company to work smoothly without confusion of direction and expectations. 
	The second key element in the supply chain management is supply. Supply is defined as the strategic decisions that should be made to determine the core capabilities of a facility and outsourcing partnerships should grow from these decisions. A company may have many different divisions of production for a single product.  All division consists of different equipment, workers, and specialties. The manager must decide which division is a best fit for the different processes of the product.  Management may also decide to outsource the work to other companies. The core reason a manager would outsource the work to companies is to create velocity. Velocity is the ability to provide quality and flexibility while at the same time reducing costs or maintaining low cost levels. 