Supply chain management (SCM) is the process of planning, implementing, and controlling the flow of goods, services, and information from suppliers to customers. It involves the coordination and integration of all activities involved in the production and delivery of a product or service, including sourcing, procurement, production, logistics, and distribution.
One of the main objectives of SCM is to optimize the overall performance of the supply chain, while balancing cost, service, and risk. This is achieved by managing the flow of materials, information, and finances from suppliers to customers in the most efficient and effective manner possible.
Effective supply chain management involves a number of key activities, such as:
Sourcing: Identifying and selecting suppliers of raw materials, components, and finished goods.
Procurement: Negotiating contracts and placing orders with suppliers.
Production: Managing the production process to ensure that products are manufactured on time and to the required quality standards.
Logistics: Managing the transportation and storage of goods, including the planning and coordination of inbound and outbound shipments.
Distribution: Delivering products to customers, including managing the flow of goods through warehouses and distribution centers.
