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Running Head: SUPPLY CHAIN MANAGEMENT 2

SUPPLY CHAIN MANAGEMENT 2

Supply Chain Management

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Supply Chain Management

Supply chain management, normally abbreviated as SCM, is the procedure of actively handling actions associated with supply chain in order to exploit the worth of customers as well as to attain a competitive advantage that is sustainable. It is usually an effort by the firms that deal in it to advance and run the supply chains in ways that are most competent and competent. It usually covers obtaining, manufacture, product development, logistics together with the information systems that are required for the coordination of these activities. Moreover, SCM is founded on two main concepts; first, each product that arrives at the consumer usually represents the effort of various organizations cumulatively. The second is that most of the organizations pay attention to whatever is taking place in within their walls. SCM is usually meant to be expansive as well as complex, and thus it relies on every partner (Handfield R., 2020).

Supply chain management links organizations through both physical and information flows. Information flows permit the partners of the supply chain to organize the tactics that are long term, as well as the everyday controlled flows of properties across the supply chain. While the physical flows consist of transformation, movement as well as storage of goods. SCM has various benefits including efficiency, lower cost, increased collaborations and higher profits. Companies are also able to carry the correct number of inventories, deal with disruptions and meet customer demands. Technology has also had great impact on supply chain management; hence its major processes have a software that is dedicated to it. Big data, internet of things, robotics and supply chain analytics are technologies that are being used to aid in solving the modern challenges facing supply chain management (Rouse M., Essex E., & Daniel D., 2019).

References:

Handfield R. (2020, February 19). What is Supply Chain Management (SCM)? SCM | Supply Chain Resource Cooperative (SCRC).  https://scm.ncsu.edu/scm-articles/article/what-is-supply-chain-management-scm

Rouse M., Essex E., & Daniel D. (2019, November 5). What Is Supply Chain Management (SCM) and Why Is It Important? SearchERP.  https://searcherp.techtarget.com/definition/supply-chain-management-SCM