Supply Chain Management

What Does Supply Chain Management Mean?

Supply chain management (SCM) is the management and oversight of a product from its origin until it is consumed.


SCM involves the flow of materials, finances and information. This includes product design, planning, execution, monitoring and control. The goal of this process is to reduce inventory, increase transaction speed and improve work flow with profit in mind.

Software application tools and modules enhance and ensure SCM efficiency.

Techopedia Explains Supply Chain Management

Outsourcing has magnified SCM complexity because the supply chain now includes more organizational roles.

Managing this complexity requires strict adherence to the following activities:

  • Strategic: Ensures efficient product movement and communication.
  • Tactical: Determines transportation, production, scheduling and research processes.
  • Operational: Determines the rate of production material, supply consumption and flow of finished goods.

Supply chain management often involves the use of supply chain software applications, which has virtually revolutionized the old system.


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Margaret Rouse

Margaret Rouse is an award-winning technical writer and teacher known for her ability to explain complex technical subjects to a non-technical, business audience. Over the past twenty years her explanations have appeared on TechTarget websites and she's been cited as an authority in articles by the New York Times, Time Magazine, USA Today, ZDNet, PC Magazine and Discovery Magazine.Margaret's idea of a fun day is helping IT and business professionals learn to speak each other’s highly specialized languages. If you have a suggestion for a new definition or how to improve a technical explanation, please email Margaret or contact her…