What is a supply chain management system?
Supply chain management (SCM) is a business process that strives to maximize efficiency when products, information and finances flow among and within different businesses. The flow involves entities such as manufacturers, wholesalers, retailers and consumers.ObjectiveSCM systems are tools that implement a system for optimal efficiency. SCM systems aim to coordinate and integrate processes of a business entity for synchronicity with its business partners.InventoryInventory refers to a business’ store of merchandise that is waiting to be sold or shipped. The objective of an effective SCM system is to keep inventory levels as low as possible, without ever running out of stock.Main FlowsThe product flow, the information flow and the finances flow are the three main components of SCM. The product flow is the movement of an end-product from supplier to customer; the information flow includes data pertaining to statuses of orders and deliveries; and the financial flow includes payment schedul
