Definition
Supply Chain Management (SCM) is the process of managing the flow of goods and services from the point of origin to the final destination within the European Union. It involves the coordination and integration of all the activities involved in sourcing, procurement, production, and distribution of products.
Key Components
- Supplier management: identifying and selecting suppliers, negotiating contracts, and managing relationships with suppliers to ensure timely delivery of goods and services.
- Inventory management: monitoring and controlling the levels of inventory to ensure that there is enough stock to meet customer demand without incurring excess costs.
- Logistics management: planning, implementing, and controlling the movement of goods and services from suppliers to customers, including transportation, warehousing, and distribution.
- Demand planning: forecasting customer demand and aligning it with production and inventory levels to avoid stock shortages or excess inventory.
- Order fulfillment: managing the process of receiving and processing customer orders, picking and packing products, and delivering them to the customer.
- Customer relationship management (CRM): managing relationships with customers, understanding their needs and preferences, and providing them with a positive experience throughout the supply chain process.