What is Supply Chain Management?

What is Supply Chain Management?

Almost every organization delivering a product or service sits within a supply chain of other organizations. Whilst we typically focus on the performance of our own organization, it’s essential to remember that we can only be successful if our “whole” supply chain is successful.

“Supply Chains Complete, Not Companies”

Martin Christopher

What is supply chain management?

Supply chain management involves overseeing the flow of goods and services to and from a business. It encompasses all the stages in transforming raw materials and components into finished products and delivering them to the end customer. Effectively managing their supply chain means that businesses can maximize the value they provide to customers whilst reducing waste.

What is SCM?

SCM stands for Supply Chain Management. SCM is the process of managing goods and services flowing into and out of a business, from the raw material stage through to the end product.

What are supply chain activities?

Supply chain activities are the activities involved in supply chain management. These typically include:

  • Procurement: Acquiring raw materials and other components from suppliers.
  • Production / Manufacturing: Transforming raw materials into finished products ready for an end customer.
  • Distribution: Transporting and delivering goods to a destination.
  • Warehousing: Storing inventory (raw materials, WIP, finished goods) before distribution.
  • Logistics: Coordinating the movement of goods, including transportation and shipping.
  • Inventory Management: Monitoring and controlling levels of raw materials, WIP, and finished goods to meet demand while minimizing waste and costs.
  • Supplier Management: Developing and maintaining good relationships with suppliers.
  • Demand Planning: Forecasting customer demand for better resource allocation.
  • Order Fulfillment: Processing and delivering customer orders.
  • Quality Control: Ensuring that finished products meet customer expectations and any other quality criteria.

SCM online course

If you’re looking to develop your understanding of SCM (supply chain management) further, then take a look at the Supply Chain Management A-Z by Rowtons Training. This MBA-style SCM online course will boost your career as a business operations and logistics manager.

This course, a series of online classes for supply chain management, is for the new or aspiring supply chain and operations manager, the ambitious procurement professionals, the striving logistics supervisors, hands-on production planners and the practical business optimization analysts.

  • Take control of your supply chain to have a real impact and improve your business operations, whether that be in manufacturing, services, retail, logistics, industrial operations or production.
  • Equip yourself to take a new leading role in your workplace, improving your processes and systems.
  • Understand the fundamentals of supply chain management: the core business trade-offs, essential analysis, calculations and basic optimization methods.
  • Become the supply chain management authority in your team on improving the operations systems in your business.

Watch free sample videos from this course and our other logistics and supply chain management courses online from the comfort of your own home or workplace. Alternatively, browse our free resources to develop your understanding of supply chain management.

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