Supply Chain Management (SCM) is a cross-functional enterprise system that uses information technology to help support and manage the links between some of a company’s key business process and those of its various shareholders. It is well known that supply chain management is an essential part of most businesses and is necessary to company success and customer satisfaction.
The goal of Supply Chain Management (SCM) is to create a fast, efficient, and low-cost network of business relationship. It is the wide variety of activities required to plan, organize and implement a product’s flow, from acquiring raw materials and production through allocation to the final customer. It creates efficiencies, raises profits, lowers costs, and boosts collaboration and more. These activities cover everything from product development, sourcing, manufacture, and logistics, as well as the information systems needed to organize these activities. Effective supply chain management helps both manufacturers and retailers decrease surplus inventory. This decreases the cost of producing, delivery, insuring, and storing product that cannot be sold.