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ILSCM > Logistics and Supply Chain Management > Frequently Asked Questions > Frequently Asked Questions Frequently Asked QuestionsWhat is the Supply Chain? Supply Chain is the concept concerned with links within and between organisations (from the supplier's supplier to the customer's customer) to provide value for customers at the lowest total cost while recognising factors of power and dependency in the management of internal and external relationships. Due to its wide scope, supply chains address complex interdependencies; in effect creating an 'extended enterprise' that reaches far beyond the organisation. Today, material and service suppliers, channel supply parties (importers, wholesalers, distributors, retailers) and commercial customers, as well as supply chain consultants, software product suppliers and system developers, are all key players in supply chains. Why is the Supply Chain important? In years past, manufacturers were the drivers of the supply chain — managing the pace at which products were manufactured and distributed. Today, in developed economies, retail customers are calling the shots and manufacturers are endevouring to meet customer demands for options / styles / features, quick order fulfillment and fast delivery. Manufacturing quality — a long-time competitive differentiator - is approaching parity, so meeting customers' specific demands for product delivery has emerged as the critical opportunity for competitive advantage. Companies that learn how to improve integration of their supply chain will become the new success stories in the global marketplace. Benchmarking studies show significant cost differences between organisations that exhibit 'best in class' performance and those with average performance. 
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