Process Management as a Determinant of Establishing a Successful Supply Chain Management in the Manufacturing Sector of the Economy

Process management (PM), based on compliance with the requirements of the Quality Management System and ISO 9001 standards, is a key predictor of generating business excellence in manufacturing companies.Management of the Procurement, Production, and Sales processes is determinant of the success of supplier relationship management and customer relationship management, which ultimately determines the success of manufacturing companies in establishing efficient and effective supply chain management (SCM).The practice of business excellence manufacturing companies (winners of the business excellence awards) has shown that the interdependence of the relationship between PM and SCM success is the key to generating long-term, sustainable business success in all markets in which the company operates.An empirical study was conducted on a sample of 113 manufacturing companies in the Republic of Serbia.It has been proven that the realization of target performance management processes, Procurement, Production, and Sales, directly affects the realization of target performance management supply chain of manufacturing companies.Internal integration, integration with suppliers, and integration with customers, as determinants of PM success, statistically significantly and directly determine each of the qualitative indicators of target performance of SCM (measured by customer satisfaction): product quality, timeliness of delivery, minimizing complaints, respecting customer suggestions, and price competitiveness.