Which statement is TRUE?

Which statement is TRUE?

• A. SCM was invented by the auto manufacturing industry
• B. Strategic partnerships are seen as one of the foundations of SCM
• C. Purchasing is seen as the final and most difficult step in the supply chain
• D. Logistics and Supply Chain Management are synonymous terms

Answer: (B)

Strategic partnerships provide the backbone for coordinating activities across suppliers, manufacturers, distributors, and customers, enabling shared goals, information sharing, and joint problem solving. In SCM, success comes from aligning incentives and capabilities across the entire supply chain, not from isolated, short-term transactions. Long-term, collaborative relationships with key suppliers and customers enable better forecasting, faster response to demand changes, and reduced total costs through integrated planning and risk-sharing. That makes this statement the best description of how SCM operates.

The other ideas don’t fit as well. SCM didn’t originate solely in the auto industry; it emerged across many sectors with advances in logistics and information sharing. Purchasing isn’t the final and most difficult step—procurement is important, but it’s one part of the broader supply chain, not the last and hardest phase. And logistics and SCM aren’t synonymous: logistics focuses on moving and storing goods, while SCM covers the broader end-to-end coordination and strategy across the entire network.