Supply chain management (SCM) can best be described as a link or connection between suppliers, manufacturers, distributors and customers. The supply chain doesn't just apply to the materials being moved, it also applies to the information being moved. In practice, it involves moving items from supplier to manufacturer, to distributor, to retailer and finally reaching customers. The shipping method or supply chain business mode did not exist in all ways, rather it became famous during the late stage of the 20th century. The introduction of trucks, planes, computers and the Internet changed everything. Supply chain goals are also to reduce costs, save money, and make predictions by determining demand so that supply is met. If supply does not match demand, waste occurs and waste is synonymous with loss of money. The importance of reducing costs through well-planned strategies should not be overlooked because lower costs and money saved lead to lower prices. Good supply chain management leads to cost reduction and cost reduction leads to saving money and the money saved leads to lower prices for the consumer and lower prices attract new customers. Before Wal-Mart, Kmart and Sears were the giants in their respective categories. Wal-Mart's electronic mindset in data collection can be attributed to the company's rise. In 1975, Wal-Mart introduced the IBM 370/135 computer system to electronically control in-store inventory and item delivery (Waligum, 2007). Wal-Mart focused on the “hub and speak” system where the hub was the distribution centers and the “spokes” were the local stores (Waligum, 2007). By placing multiple distribution centers in close proximity, Wal-Mart was able to reduce shipping distances and...... half the paper ......and waste equals loss of money. The importance of reducing costs through well-planned strategies should not be overlooked because lower costs and money saved lead to lower prices. Works Cited Michael, (2010). Whips and beer: why supply chain management is so difficult. retrieved February 3, 2014, from http://www.decisioncraft.com/dmdirect/cpfr.htmWaligum, T (2007). 45 Years of Wal-Mart History: A Technology Timeline. retrieved February 3, 2014, from http://m.cio.com/article/147005/45_Years_of_Wal_Mart_History_A_Technology_Time_Line?mm_ref=https%3A%2F%2Fwww.google.com%2FRussel, R & Bernard w. Taylor (2006). Supply Chain Management - Operations Management - 5th Edition. retrieved February 3, 2014, from http://is.ba.ttu.edu/faculty/ch10.pptSong, H (2012). Management of the tourism supply chain. retrieved February 3, 2012 from