Definition of the word supply management

The term "supply management" originated in the late 1960s in Canada as a response to the country's economic challenges at the time. Pressed by economic recession and increased global competition, the Canadian government perceived the need to improve the management of the country's supply chain, from raw materials and production to distribution and consumption. In 1965, the Canadian government established the National Supply Authority (NSA) as part of a broader reform program designed to improve efficiency in federal government procurement. The NSA, later renamed Supply Canada, adopted the term "supply management" to describe a strategic approach that prioritized Canadian economic, security, and social objectives. The approach emphasized the importance of managing the availability and quality of goods and services, minimizing costs, and sustaining a stable market. By the mid-1970s, the term "supply management" had gained currency in Canada, and it became a litmus test of Canadian business practices and a symbol of national sovereignty. Today, "supply management" refers to the coordinated management of the production, distribution, and marketing of goods and services, typically involving government intervention in price, production, and trade policies. Its goal is to maximize the economic, environmental, and social benefits for the country while minimizing costs and negative impacts on stakeholders. Some examples of key supply management practices include regulated production quotas, import tariffs, and export subsidies. While "supply management" is most commonly associated with the Canadian agricultural industry, it can be applied to various other sectors, from healthcare to energy, transportation, and technology.