What is Supply Chain Management?
Supply chain management (SCM) is the process of optimizing the shipment of goods and services from supplier to customer. The goals of SCM are to optimize production, decrease manufacturing time, minimize inventory, streamline order fulfillment and reduce cost. Today’s supply chains for mid and large companies span the globe, with suppliers and partners in multiple countries and multiple time zones. As such, the use of quality supply chain management software is critical to success.
Supply chain management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third party service providers, and customers. In essence, supply chain management integrates supply and demand management within and across companies. Boundaries and Relationships: Supply chain management is an integrating function with primary responsibility for linking major business functions and business processes within and across companies into a cohesive and high-performing business model. It includes all of the logistics management activities noted above, as well as manufacturing operations, and it drives coordination of processes and activities with and across marketing, sales, product design, finance, and information technology.
