The need for effective materials management has been duly recognized. Advances in information technology, witnessing the application of complex software for inventory tracking and management via LAN and WAN, have become competitive factors. Concepts such as JIT and TQM have made shop floor processing easier. The origin of supply chain management dates back to the 1980s. The 1980s saw a drastic change in the business scenario all over the world due to globalization and liberalization. Low cost, high quality product and customer satisfaction have become the buzzwords for the industry. The increased reliance on JIT and TQM methodologies has created the vision of strategic partnerships. The development of information technology has further reduced the concepts of national borders. The first mention of the term supply chain management was found in an article published in 1982 in the United States. Market globalization also presented an excellent opportunity to reach high-potential global markets. This required reviewing the way inventory and logistics were carried out. Challenges associated with improving quality, manufacturing efficiency, customer service, and new product design and development are also