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Supply Chain Management: Industry Definition and Classification

Industry Definition and Classification

Supply chain management involves managing and coordinating the movement of goods, services, and information through the entire supply chain process, from acquiring raw materials through the delivery of products to the consumer. This process involves the interaction and coordination of many companies and service industries in the areas of manufacturing, warehousing, selling, transportation, distribution, and information systems and management

North American Industry Classification System (NAICS)
A key concept in conducting industry research is the classification of economic activity. The North American Industry Classification System (NAICS) is a system for classifying economic activity and has replaced the U.S. Standard Industrial Classification (SIC) system. NAICS is an improvement over SIC in that establishments that use the same or similar processes to produce goods or services are grouped together. Where SIC codes consisted of 4 digits, NAICS uses 6 digit numbers. NAICS is an improvement over SIC since it recognizes many more new industries separately as well as allows for comparable statistics among the United States, Canada, and Mexico. Consult the online NAICS codes and tables to identify the codes for the industry you are interested in researching.

The following are some of the major NAICS codes relating to supply chain management:

  • NAICS 481112 Scheduled freight air transportation
  • NAICS 482111: Line-haul railroads
  • NAICS 483111: Deep sea freight transportation
  • NAICS 483211 Inland water freight transportation
  • NAICS 484121 General freight trucking, long-distance trucking
  • NAICS 511210 Software publishers
  • NAICS 541614 Process, physical distribution, and logistics consulting services
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