What is supply chain management (SCM)?
Understand the Problem
The image discusses concepts related to supply chain management, including its definition, components, and importance for service providers.
Answer
SCM manages the flow of goods and services from raw materials to finished products, ensuring efficient and coordinated production and delivery.
Supply Chain Management (SCM) is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers. It includes all activities from sourcing raw materials to delivering the final product.
Answer for screen readers
Supply Chain Management (SCM) is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers. It includes all activities from sourcing raw materials to delivering the final product.
More Information
Supply chain management is critical for businesses as it helps coordinate the complex network of suppliers, manufacturers, and distributors, ensuring products are produced and delivered efficiently and cost-effectively.
Tips
A common mistake is confusing supply chain management with logistics. SCM is broader and includes sourcing, making, and delivering the final products, while logistics primarily focuses on the transportation and storage of goods.
Sources
- Supply Chain Management (SCM): How It Works & Why It's Important - investopedia.com
- What is SCM (Supply Chain Management) - Oracle - oracle.com
- What is supply chain management (SCM)? - SAP - sap.com
