Supply Chain Management are practices that help firms to achieve and sustain competitive advantage over their competitors. Those practices will help to improve product quality and customer service level which resulted in the increase of market share and the return on assets. However, the proper implement of Supply Chain Management need proper supervision from leaders, managers and directors of the firm. The successful of implementing SCM to a firm will gain that firm competitive advantage. SCM and Transformational Leadership go hand in hand with each other as Transformational Leadership can significantly contribute to the implementing of SCM practices. SCM practices can be obtain be doing partnership with suppliers, implementing new technology to manage those partnerships and storage capacity. According to professional textbook such as Lambert and Copper (200, p.66); SCM is described as the key factor for any successful business in the world. It is the integration key for any type of business from providing goods and services to information. SCM practices does not only give the firm a competitive edge but also benefit customers and stakeholders. There are two perspectives of SCM, purchasing perspective from manufacturers and logistics perspectives of retailers. Purchasing perspective focus on methods that help firms to buy raw materials effective and efficient. By effective and efficient, a firm can ensure the quality of the materials purchased and cycle time of inventory. Transportation perspective of SCM is focused in the transformation of inventories to quality information which resulted in easy handling and management of goods. Last but not least is the five dimensions of SCM: “strategic supplier partnership, customer relationship, level of information sharing, quality of information sharing and postponement. Strategic supplier partnership is a very important partnership for supply chain management between suppliers and firms. Suppliers and firms both of them can get benefit from this partnership. In this partnership, suppliers can provide money to improve technology for companies and then companies can improve technology for companies, and then companies can improve product quality. Companies are also have responsibility for customers. Companies should research the satisfaction of customers. Then they should provide this information to their supply chain partners. Information sharing is an important factor for business partners. It need to be more exact, seasonable, detailed, and believable. So we can believe that which information is shared is the key of supply chain management. And postponement is also a practice. This is a value added process. Companies make some products delayed. Then the customized products can be delivered. Today supply chain management practices are more important for improving firm's performance. It still have huge advantage. And transformational leaders are still helpful for implementing supply chain management practices.
In order for any infrastructure to be successful there must be a person or team who defines any group or organizations’ main objectives, sets out the steps that must be taken, and ensures that objectives are met within given time parameters. The role of leadership is not only to ensure that employees are doing work properly, but also to ensure that those they lead are knowledgeable in their field and committed to the job. By creating a trust based relationship, a leader can increase employee engagement and increase productivity and revenue. Contrary to popular belief, leadership relationships do not only consist of those subordinates within a corporation, but also suppliers and customers; the focus here is on the latter relationships. The practice of focusing on these concepts is called transformational leadership and there are four main principles that make it up: supply chain management, strategic supplier