What is supply chain management?

Question

What will be an ideal response?

Answer 1

Supply chain management (SCM) is the process of coordinating all the activities involved in producing a product and delivering it to the customer. SCM starts with forecasting demand for a product and then moves on to planning and managing supply and demand, acquiring materials, scheduling and producing the product, warehousing, controlling inventory, distributing the product, and delivering it. The final stage involves customer service. SCM focuses heavily on purchasing and inventory control. Raw materials, including component parts, are expensive for many manufacturers. Thus, keeping inventory costs down while ensuring that good-quality materials are available when needed is important in the supply chain.