Supply Chain Management
Supply chain management (SCM) is the process of managing the flow of goods, services, and information from raw materials to the end customer. It involves sourcing, manufacturing, warehousing, shipping, and distribution.
SCM components
- Procurement: Sourcing materials
- Operations management: Manufacturing / Contract Manufacturing and managing inventory
- Logistics: Transporting and managing freights, Insurance
- Marketing channels: Managing product returns and customer service
- Storage & Distribution: Product Storage and Supply to Customers
Supply chain management (SCM) is the monitoring and optimization of the production and distribution of a company’s products and services. It seeks to improve and make more efficient all processes involved in turning raw materials and components into final products and getting them to the ultimate customer. Effective SCM can help streamline a company’s activities to eliminate waste, maximize customer value, and gain a competitive advantage in the marketplace.
Key Takeaways
- Supply chain management (SCM) is the centralized management of the flow of goods and services to and from a company
- With SCM, companies can cut excess costs and deliver products to the consumer faster and more efficiently.
- Good SCM can help prevent expensive product recalls and lawsuits as well as bad publicity.
- The five most critical phases of SCM are planning, sourcing, production, distribution, and returns.
- A supply chain manager is tasked with controlling and reducing costs and avoiding supply shortages.
NMCI Association with MRO
What does MRO mean in supply chain?
Maintenance, repair and operations (MRO) refers to a range of activities that keep a company running on a day-to-day basis. Companies rely on their supply chains to provide the materials, tools and components they need for MRO activities.