Learn About Supply Chain Management (SCM): What it is and How it Works (Video)

Supply chain management (SCM) is an important concept in business today. It is the process of managing the flow of materials, information, and finances from the point of origin to the point of consumption. It involves coordinating and integrating all activities related to the procurement, production, distribution, and delivery of products and services. SCM is essential for businesses to remain competitive in today’s global economy.

In this video, we will discuss what SCM is and how it works. We will look at the different components of SCM, such as procurement, production, distribution, and delivery. We will also discuss the importance of SCM in today’s business environment.

The first component of SCM is procurement. This involves the acquisition of raw materials, components, and services from suppliers. It also includes the negotiation of contracts with suppliers and the management of inventory levels. The goal of procurement is to ensure that the right materials and services are available when needed at the lowest possible cost.

The second component of SCM is production. This involves the transformation of raw materials into finished products. It includes activities such as design, assembly, testing, packaging, and labeling. The goal of production is to ensure that products are produced efficiently and meet customer requirements.

The third component of SCM is distribution. This involves the movement of products from the point of production to the point of consumption. It includes activities such as warehousing, transportation, and order fulfillment. The goal of distribution is to ensure that products are delivered on time and at the lowest possible cost.

The fourth component of SCM is delivery. This involves the movement of products from the point of consumption to the customer. It includes activities such as customer service, returns processing, and payment processing. The goal of delivery is to ensure that customers receive their orders on time and in good condition.

SCM is essential for businesses to remain competitive in today’s global economy. It helps businesses reduce costs, improve efficiency, and increase customer satisfaction. By understanding how SCM works, businesses can better manage their supply chains and improve their bottom line.

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