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.