Importance of Supply Chain Management in Modern BusinessesSupply Chain Management (SCM) as defined by Tom McGuffog consists of to “maximize added value and reduce total cost throughout the business process by focusing on speed and certainty of market response.” Due to globalization and ICT, SCM has become a tool for businesses to compete effectively, whether locally or globally. SCM has become a necessity, especially for the manufacturing industry, when it comes to providing products at a competitive cost and of higher quality than their competitors. Here are some of the reasons why SCM has become important to today's manufacturing industry: -Competitive Advantage Through Core CompetenciesToday's business climate has rapidly changed and become more competitive than ever. Businesses now not only need to operate at lower costs to compete, but they also need to develop their own core competencies to distinguish themselves from competitors and stand out in the marketplace. In creating a competitive advantage, businesses must divert their resources to focus on what they do best and outsource processes and tasks that are not important to the overall business goal. SCM enabled the company to rethink its entire operations and restructure them so that it could focus on its core competencies and outsource processes that were not part of the company's core competencies. Due to today's competitive market, this is the only way for a business to survive. The SCM application strategy will not only impact their market positioning but also the strategic decision regarding choosing the right partners, resources and manpower. By focusing on core competencies, the company will also be able to create niches and specialization in key areas. As stated in the Blue Ocean strategy described by Chan Kim, in order to create a niche of competitive advantage, companies must have an overview of the entire process and determine which process can be reduced, eliminated, increased and created . As cited by Chan Kim, the Japanese auto industry is capitalizing on its resources to build small and efficient cars. Japanese automotive industries are gaining a competitive advantage by using their supply chain to maximize their core competencies and position themselves in a niche market. The strategy works and now Toyota Motor Corporation, a Japanese company, is considered the world's leading automobile manufacturer, beating Ford and General Motors of the United States..