How Does SCM Work?
Key Takeaway
Supply Chain Management (SCM) works by overseeing and coordinating the flow of goods, information, and finances from raw materials to final products. SCM ensures that each step, from sourcing and production to delivery and returns, is efficient and cost-effective. This process involves planning, procurement, manufacturing, logistics, and monitoring.
Effective SCM relies on key components like inventory management, supplier relationships, and logistics. Technologies such as IoT, AI, and data analytics play a crucial role in enhancing visibility and decision-making. By optimizing these functions, SCM helps businesses reduce costs, improve quality, and increase customer satisfaction.
