Supply chain is basically the network that is involved in producing a product or offering a service. For production of any commodity or goods there is a requirement of supply chain and it requires proper management of several things. Hence, Supply Chain Management includes all the stages right from the storing of the raw materials, the specified supply to the production unit, the production, and distribution of the finished product. SCM is a very challenging but a necessary task to be carried on by the people involved in business.

A supply chain is made up of several basic elements and a company needs to follow it no matter whether it is small or big in size. Some of the crucial SCM elements are: planning, purchasing, inventory, production, and transportation. When all these elements are combined together it results into effective management of the product supply. However, it is not very easy to manage all these elements a specific planning need to be followed for the same. Here are the three important levels of an ideal supply chain management:

• 1. Strategic level- this is the level at which it is necessary for the company management to look at the crucial strategic decisions. The decisions can be concerning the organization, the size, and the site of the production, the partners, and the suppliers and so on. An brief account of all these points is included in this step.
• 2. Tactical Level- this level is focuses on several measures that are to be adopted so that the production can be made with cost benefits. At this level the management requires to develop a strong purchasing strategy with the suppliers of the raw materials, the logistics, the warehouse costs, so on.
• 3. Operational Level- there are plenty of decisions made by the company on the daily basis that have direct or indirect impact on the supply chain. It is the duty of the management to make operational decisions wisely by making necessary changes in such issues as the schedule of the production, purchasing agreements, taking orders and so on.

Hence, an effective Supply Chain Management acts as a back bone for the smooth running of any company and this makes it very essential for the business to incorporate a strong SCM in their company.