Supply Chain Management

Supply chain management (SCM) is an important concept

One of the most important subjects for global businesses today is none other than the supply chain management (SCM). To understand the concept of supply chain management, one has to have a clear understanding of supply chain. Supply chain is a complete system with which a company produces a product and brings it to the market for distribution. There are so many technological issues involved with the concept and managing all those issues is basic idea of supply chain management (SCM).

Since supply chain consists of sourcing, procurement and conversion, so, planning and management of all these activities is supply chain management (SCM). Besides dealing with these activities, SCM also works for the collaboration and coordination of channel partners. Channel partners can be intermediaries, suppliers, customers, etc. So, it can be said that SCM is a broad term consisting of several issues related to production and distribution of goods.

As mentioned that supply chain management (SCM) also takes the relations with other channel partners into account, so, it truly become a complicated process. Actually, organizations now endeavor to outsource certain processes like procurement of raw material and distribution of finished goods. It is because of this outsourcing, the number of organization involved in creation process rises. Increased number of organizations makes it possible to satisfy the demands of customers in a better way. So, supply chain management (SCM) doesn´t only deals with the material movement within an organization but out of an organization as well.

This basic information pertaining to SCM implies that it is an important concept for organizations, especially for those which are looking to reduce cost along with uplifting the customer satisfaction. It surely is a complicated process but the availability of SCM software has made it much more convenient for organizations.

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