Definition of Supply Chain Management (SCM)
Supply chain management is the process of managing all the activities of manufacturing a product or delivering a service from supplier to end consumer. It involves handling of materials, information flow, finances etc. The supply chain is a process from supplier to manufacturer to wholesaler to retailer to consumers. And supply chain management involves coordinating and integrating these flows both within and among companies.
Explanation of Supply Chain Management (SCM)
Supply chain management is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. It represents a conscious effort by the supply chain firms to develop and run supply chains in the most effective and efficient ways possible. Supply chain activities cover everything from product development, sourcing, production, and logistics, as well as the information systems needed to coordinate these activities.
There are three main goals of supply chain management.
· To reduce inventory
· To increase the speed of transactions with real-time data exchange
· To increase revenue by satisfying customer demands more efficiently