Saturday, May 13, 2006

What is Supply Chain Management?

Supply chain management (SCM) is the process of planning, implementating, and controling the operations of the supply chain with the purpose to satisfy customer requirements as efficiently as possible. Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point-of-origin to point-of-consumption.

Some experts distinguish supply chain management and logistics management, while others consider the terms to be interchangeable.

From the point of view of an enterprise, the scope of supply chain management is usually bounded on the supply side by your supplier’s suppliers and on the customer side by your customer’s customers.

Supply chain management is also a category of software products.

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