Supply Chain Management (SCM) is the control of the supply chain as a process from supplier to manufacturer to wholesaler to retailer to consumer.

Supply Chain Management does not involve only the movement of a physical product through the chain but also any data that goes along with the product and the actual entities that handle the product from stage to stage of the supply chain.

Supply Chain Management (SCM) represents an effort by suppliers to develop and implement supply chains that are as efficient and economical as possible.

Supply Chains cover everything from production, to product development, to the information systems needed to direct these undertakings.

There are essentially three goals of SCM: to reduce inventory, to increase the speed of transactions with real-time data exchange, and to increase revenue by satisfying customer demands more efficiently.

Five Stages of SCM:

§  Plan

§  Develop

§  Make

§  Deliver

§  Return


·         The entire process of supply chain management must be planned out with the primary goal of the organization in mind.

·         The plan should also address how the goods or service of organization will fulfil the needs of their customers.


·         A major component of this process is to develop strong relationships with suppliers.

·         The potential suppliers are then contracted and conditions of delivery, payment and transportation are then finalized with them.


·         The product is finally manufactured, thoroughly tested and packaged and then launched into the market.


·         This involves the transportation of the product through various channels into the hands of the ultimate customer.


·         Customer queries and complaints are handled subsequently. If there are any defective items present, they are returned to sender.


Flows of SCM:

Supply Chain Management flows are divided into 3 basic flows that are:

§  The Product Flow

§  The Information Flow

§  The Finances Flow


Advantages of SCM:

Advantages of Supply Chain Management Software are:

§  Higher Efficiency Rate

§  Reduce Cost Effects

§  Raise Output

§  Raised Business Profit Level

§  Boost Cooperation

§  Lowers Delay in Processes

§  Enhanced Supply Chain Network


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