What is Supply Chain Management?
Supply chain management (SCM) refers to the management, or oversight of a company’s supply chain—that is, the group of entities or organizations responsible for the movement of a product or service from its point of inception to its end user. The supply chain includes every party and activity that contributes to the transfer of a product or service from the supplier to the customer. While a broad supply chain management definition includes simply the general oversight of a given supply chain process, there is also typically an implied objective of optimizing the value and performance of the company and procedures.
What is SCM in the context of ERP? As part of a company’s ERP suite, effective supply chain management enables a strategic and comprehensive monitoring of the flow of goods and services, allowing for immediate access to relevant data. Companies often utilize SCM software with success to manage the complexities of supply chain activities and seize valuable opportunities.