An example of these conflicts is the interrelation between the sale department desiring to have higher inventory levels to fulfill demands and the warehouse for which lower inventories are desired to reduce holding costs . Origin of the term and definitions[ edit ] InKeith Olivera consultant at Booz Allen Hamilton introduced the term "supply chain management" to the public domain in an interview for the Financial Times. Supply chains were originally defined as encompassing all activities associated with the flow and transformation of goods from raw materials through to the end user, as well as the associated information flows. Supply chain management was then further defined as the integration of supply chain activities through improved supply-chain relationships to achieve a competitive advantage.
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