Supply Chain Management
Supply Chain Management (SCM)
What is SCM (supply chain management)
The short answer is that SCM is the management of the business supply chain, where the supply chain includes any function that?s required to produce and deliver the final product to the customer. More specifically supply chain functions include: managing supply and demand, selecting sources for raw materials or parts, producing / assembling / packaging, warehousing, maintaining and tracking inventory, managing order entry, and providing distribution across all channels including delivery to the customer. SCM is the act of integrating any or all activities associated with supply chain flows that occur inside or outside the company. Two important objectives of supply chain management are (1) getting the right supply chain strategy to meet or exceed customer expectations, and (2) providing communication between suppliers and trading partners to enable collaboration.
Figure 1 provides a simple example of a supply chain model. As shown in the Figure, the first event is when the retail store receives an order from the customer. At the same time the retail store gets the order, the supplier also receives information about the order. The supplier checks inventory and if inventory is low a message is sent
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