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Supply Chain Management

Supply chain management (SCM) 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 & efficient ways possible. Supply chain activities cover everything from product development, sourcing, production, and logistics, as well as the information systems needed to chain is the connected network of individuals, organizations, resources, activities and technologies involved in the manufacture and sale of a product or service.

Functions of SCM

  • Connects the activities of logistics, purchasing, and operations to ensure that they focus on goals that benefit overall performance.
  • increases profitability by aligning the processes used to plan, source, make, deliver, and return a company’s products and services.
  • Simulation tools can predict how a supply chain will behave and show how small changes can cause major disruptions in the flow of materials.
  • Executives are responsible for using people, processes, and technology to meet the needs of customers.

Benefits of SCM

  • Enables companies to improve product flow through accurate demand and sales forecasting and also improve inventory management to arrest the bullwhip effect and avoid underproduction.
  • Enables accurate, timely, complete, and relevant information flow to avoid missed opportunities and possible risks.
  • Enterprises can comprehensively and continually assess their processes, identify and fill all the gaps, lower costs, competently evolve with ever-evolving supply chains, and enable quicker decision making.