The Concept of Supply Chain Management Nowadays, as global economic growth evolves, the competitiveness of suppliers of goods and services becomes extreme. To cooperate with global competition and interorganizational cooperation, suppliers of goods and services must put a supply chain management strategy into practice. This application is accompanied by an awareness of the importance of an integrated relationship between suppliers and consumers. The supply chain is considered a complete end-to-end process. It starts with the level of efficiency of the material flow until it becomes a customer product. Competition occurred at all levels of the production process until it became more prioritized over the efficiency of the production process. The definition of supply chain management is broad, but the most widely practiced theory is that of Handfield and Nichols (1999). Referring to their idea, supply chain consists of 3 different stages which are- Administration of activities and processes,- Coordination of business functions in a company (cross-functional),- Coordination of business at inter-level organizational. In practice, supply chain management can be viewed as a group of performance towards a goal or objectives. The network of relationships must be coordinated throughout the process. The main idea of ​​supply chain management is the integrated approach to managing relationships, information and material flows in the interorganizational dimension in order to ensure positive utilization of costs and flows. These activities can contribute to positive competition and customer satisfaction index in terms of quality and delivery time of goods and services. Referring to traditional management methods, the emphasis is placed on cost control and performance improvement. This management style cannot be applied...... middle of paper ...... four different perspectives which are:• Internal processes,• Customer satisfaction,• Financial performance,• Improvement, innovation and growth companies.Another technique for improving supply chain management is total cost of ownership. By analyzing the cost when purchasing and using goods or services, you can also drive efficiency and discover new opportunities and improvement plan among supply chain participants. Total cost of ownership is commonly used as a survey tool and an effective way to track hidden overhead costs. Conclusion The fluctuation of economic trend will become one of the main operating factors of supply chain management. Practitioners must follow the changes in the environment. A new and different method or modification of the existing technique must be developed and applied for as long as the supply chain is still needed..