What is Supply Chain Management?
The process of strategically managing flows of goods, services, finances and knowledge, along with relationships within and among organizations, to realize greater economic value through:
- supporting enterprise strategic objectives
- contributing to the achievement of the competitive advantage of the enterprise
- enhancing customer satisfaction
Supply Chain Management (SCM) involves the integration of core areas of knowledge (procurement, operations, logistics) and supporting knowledge areas (marketing, finance, and accounting, human resources, knowledge management).
It is the design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally.
Supply Chain Management is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. It involves coordinating and integrating these flows both within and among companies.
A done-it-this-way-for-years attitude can mask opportunities to do better.
