Supply Chain Management

Definition of Supply Chain Management as it relates to Business

Supply Chain Management (SCM) refers to the coordination and management of activities involved in the production, delivery, and return of a product or service, from raw material sourcing to end customer. It encompasses the integration of information flow, materials flow, and finances as they move through the supply chain, ensuring efficiency, effectiveness, and responsiveness to customer needs. SCM is a critical business function that aims to maximize value for customers while minimizing costs for the organization, by optimizing processes, reducing waste, and enhancing collaboration with suppliers, manufacturers, distributors, retailers, and customers. It plays a key role in achieving business objectives such as cost reduction, revenue growth, and customer satisfaction.

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Supply Chain Management
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