What best describes supply chain management?

Supply chain management is best described as the handling of the flow of goods and services, including all processes that transform raw materials into final products. This definition encompasses the comprehensive nature of supply chain management, which involves various interconnected activities that ensure efficient production, delivery, and distribution of goods.

Understanding the entire supply chain is crucial because it involves sourcing raw materials, manufacturing processes, inventory management, and logistics. Each of these elements must work seamlessly together to meet customer demands while optimizing efficiency and reducing costs. Thus, the focused approach described in the correct answer reflects the broader scope of managing the entire supply chain, not just specific segments.

While some other choices touch on aspects of supply chain management, such as cost reduction through outsourcing or logistics emphasis, they do not capture the full breadth of what supply chain management entails. The correct answer emphasizes the integration of all processes from raw material to final product, which is essential for effective supply chain management.