Supply Chain Management (SCM) is the strategic process that coordinates and integrates all of the activities required to plan, procure, convert, and deliver products and services to customers.
The goal of SCM is to streamline the flow of materials, information, and money along the supply chain in order to achieve lower costs and higher quality. In other words, SCM is all about making sure that the right product gets to the right customer at the right time.
SCM requires coordination and collaboration between suppliers, manufacturers, distributors, retailers, and customers in order to run smoothly. The term ‘supply chain’ refers to all of the steps involved in getting a product or service from its original source to the final customer.
The main objectives of SCM are to:
– Improve efficiency by reducing waste and unnecessary steps
– Increase quality by ensuring that products meet customer expectations
– Reduce costs by streamlining processes