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Facts You Must Know About Supply Chain Management

Screen Shot 2019 11 21 at 1.38 NEW

Screen Shot 2019 11 21 at 1.38 NEW

By: FreightGuru
#FreightGuru

Supply Chain Management (SCM) involves the management of all business processes and activities that transform raw materials into final products, in a streamlined and cost-effective way.

It involves a mix of both planning and execution of the required processes which help in streamlining the flow of materials, information, and finances in production, planning, sourcing, storage, and inventory management.

Common terms

Supply chain attempts to link production, shipment, and distribution of products. It allows companies to save on costs and deliver products faster.

As a business owner, there are standard terms which you should be familiar with, such as:

Supply Chain Management Background

As a professional, it is good to know the roots of your industry. Supply chain management has existed for more than 100 years and has evolved from a labor-intensive and straightforward process to present-day engineering and management of complex global networks.

It has its roots in logistics and the need to improve the labor-intensive processing of handling materials.

Conclusion

Every product in the market is a result of the efforts of several organizations that form a supply chain. Although SCM is a very crucial segment in any economy, most companies have adopted it a value addition just recently.


List of sources
https://www.zoho.com/inventory/guides/20-important-scm-terms.html
https://www.investopedia.com/terms/s/scm.asp
https://searcherp.techtarget.com/definition/supply-chain-management-SCM
https://scm.ncsu.edu/scm-articles/article/what-is-supply-chain-management-scm
https://www.american-purchasing.com/glossary

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