Supply chain management (SCM) is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. Supply chain management involves coordinating and integrating these flows both within and among companies. It is said that the ultimate goal of any effective supply chain management system is to reduce inventory (with the assumption that products are available when needed). As a solution for successful supply chain management,
Supply chain management (SCM), the management of the flow of goods and services.
A broad term describing the various acts of identifying, acquiring and managing the products and/or resources needed to run a business or other organization. These include physical goods as well as information, services and any other resources needed.
Supply chain management software includes tools or modules used to execute supply chain transactions, manage supplier relationships, and control associated business processes.
Supply chain event management (SCEM) considers all possible events and factors that can disrupt a supply chain. With SCEM, possible scenarios can be created and solutions devised.
Supply chain management flows can be divided into three main flows:
- The product flow
- The information flow
- The finances flow
The product flow includes the movement of goods from a supplier to a customer, as well as any customer returns or service needs. The information flow involves transmitting orders and updating the status of delivery. The financial flow consists of credit terms, payment schedules, and consignment and title ownership arrangements.
There are two main types of SCM software: planning applications and execution applications. Planning applications use advanced algorithms to determine the best way to fill an order. Execution applications track the physical status of goods, the management of materials, and financial information involving all parties.