"Human capital supply chain" refers to the integration of business planning, strategic workforce planning, staffing and recruiting processes and technology to enhance corporate productivity and profitability. Employing methods of common manufacturing and distribution supply chain management principles to human resources and human capital, corporations create an end-to-end, human capital supply chain.
The term was introduced in the 2009 book, Human Capital Supply Chains. The concept consolidates 30 years of expertise by companies like Toyota, Wal-Mart, and Dell in total quality management, lean and strategic supplier relationships, and applies it to the human resources industry. The major aim when implementing a human capital supply chain is to reduce labor costs. While that is attained in the short-term, the long-term tuning of the supply chain can result in growth and strategic competitive advantage.