Supply Chain Management

Supply Chain Management

What is Supply Chain Management

Supply chain management, also known as SCM, is the management of information, materials, and finances as they are interconnected to move in an organized process from the supplier to manufacturer, then towards wholesaler, retailer and finally the consumer (Weele, 2009). Supply chain management encompasses coordination and integration of flows involving the work among and within companies (Weele, 2009). It is commonly assumed that the definitive goal of all effective and effective supply chain management systems is to reduce excess of inventory, as they assumed that products are to be made available as needed.

Importance of Supply Chain Management

Supply chain is important because as a viable solution for having a successful and effective supply chain management, a lot of practices need to be carried out that ensure that the system is made efficient, thereby making the whole process of supply chain timely and easier to manage. Considering the importance of supply chain management, it should not be forgotten that many steps are involved in delivering products to consumers, and there are various organizations which are involved in making this process happen efficiently and successfully. It is extremely important to understand the different components and elements which are crucial when it comes to providing and supplying consumers with the type of products they purchase and want to get delivered.

The organizations that work together to make up the effective and efficient supply chain are interlinked by means of information flows and physical flows. Physical flows include the movement, storage and transformation of materials and goods (Leeman, 2010). They tend to be the most visible part of the whole of supply chain and are equally as important as the information flows. The task of information flows is to make it possible for the different supply chain ...