Loading your learn pack…
Read the summary, then start training!
SCM manages the end-to-end flow of materials, information, and capital from suppliers and raw-material sources to final customers.
Supply chain management (SCM) is the integrated management of the activities, organizations, and information involved in moving goods and services from the sourcing of raw materials to production, distribution, and final delivery to customers. It includes procurement, operations management, demand planning, inventory management, logistics, transportation, marketing channels, order fulfillment, and, where relevant, reverse logistics such as returns and recycling. SCM coordinates upstream suppliers, internal business functions, intermediaries, service providers, distributors, retailers, and customers to create value and improve end-to-end performance. The scope of SCM extends beyond the boundaries of a single organization and emphasizes the coordinated flow of materials, information, and capital across interconnected supply networks. Its objectives include reducing total costs, improving efficiency and customer satisfaction, synchronizing supply with demand, increasing visibility, managing risks, and building competitive advantage. Modern SCM also addresses resilience, sustainability, ethical responsibility, transparency, digital technologies, collaboration, and the ability of supply chains to adapt or transform in response to disruptions and changing market conditions.
SCM manages the end-to-end flow of materials, information, and capital from suppliers and raw-material sources to final customers.
Its major functions include sourcing and procurement, demand planning, production, inventory management, warehousing, transportation, distribution, marketing channels, and order fulfillment.
SCM is a cross-functional and interorganizational approach that integrates business processes within a company and across suppliers, logistics providers, intermediaries, distributors, retailers, and customers.
The main goals are to create customer and stakeholder value, reduce total costs, improve efficiency, synchronize supply with demand, and strengthen competitive performance.
The scope may include reverse logistics, such as product returns, recovery, reuse, and recycling.
Modern supply chain management emphasizes collaboration, trust, visibility, risk management, resilience, sustainability, ethical practices, and digital coordination across global networks.
The coordinated planning, execution, control, and monitoring of supply chain activities to create value and optimize the flow of goods, services, information, and capital.
A network of organizations linked by upstream and downstream flows of products, services, finances, or information from a source to a customer.
The process of sourcing and purchasing the raw materials, components, goods, and services required by an organization.
The planning and control of the storage, transportation, and movement of goods through the supply chain.
The process of forecasting and managing customer demand so that supply, production, and inventory can be appropriately coordinated.
The ability to access and share information about the location, status, production stage, availability, and expected delivery of goods throughout the supply chain.
The capacity of a supply chain to persist, adapt, or transform when facing disruptions or changing conditions.
The management of product returns, recovery, recycling, repair, or movement of goods from customers back toward producers.
“Can you explain what "SCM manages the end-to-end flow of materials, information, and capital from suppliers and raw-material sources to final customers." means in simple terms?”