The Concept of Supply Chain Management Nowadays, with global economic growth and change, the competitiveness of suppliers of goods and services becomes extreme. To collaborate with global competition and interorganizational cooperation, suppliers of goods and services must practice supply chain management strategy. This application was born from the awareness of the importance of an integrated relationship with suppliers and consumers. The supply chain is seen as an entire end-to-end process. The level of effectiveness of the material flow is started until it becomes a product for the customer. Competition occurred throughout all levels of the production process until it became a priority over the efficiency of the production process. The definition of supply chain management is broad, however the most practiced theory is that of Handfield and Nichols (1999). Referring to their idea, the supply chain consists of 3 different phases: - The administration of activities and processes, - The coordination of business functions in an enterprise (cross-functional), - The business coordination at an inter-organizational level. In practice, supply chain management can be seen as a group of performances towards one or more purposes. The network of relationships should be coordinated throughout the process. The main idea of ​​supply chain management is the integrated approach to managing relationships, information and material flow in the interorganizational dimension so that it can provide positive cost and flow utilization. Such activities can contribute to positive competition and customer satisfaction index in terms of quality and delivery times of goods and services. Referring to traditional management methods, the main focus is placed on cost control and performance improvement. This management style cannot be applied... halfway through the document... four different perspectives which are:• Internal processes,• Customer satisfaction,• Financial performance,• Improvement, innovation and growth of companies.Another The technique to improve supply chain management is the total cost of ownership. By analyzing the cost when purchasing and using goods or services you can also manage effectiveness and discover new opportunities and improvement plans among supply chain participants. Total cost of ownership is commonly used as a survey tool and an effective way to track hidden indirect costs. Conclusion The fluctuation of the economic trend will become one of the main factors on which supply chain management operates. Practitioners need to follow the changes in the environment. A new and different method or modification of the existing technique should be developed and applied as long as the supply chain is still needed.