Supply chain management scm is the oversight of materials finances and information when they move from the supplier to manufacturer to wholesaler to retailer and finally to the consumer through a predefined process.
Example of material flow in supply chain management.
Supply chain management is the management of these three flows.
This is the flow of the physical product from supplier all the way down to the customer.
In this article we will look at supply chain management in detail.
A supply chain is a network of retailers distributors transporters storage facilities and suppliers who take part in the production delivery and sale of a product that convert and move the goods from raw materials to end users it describes the processes and organisations involved in converting and conveying the goods from manufactures to consumers.
The best one will be supply chain management is a total systematic approach to manage flow of information material and money between suppliers and customers.
This flow is usually uni directional that is it only flows one direction from supplier to customer.
In addition chain includes a huge number of different contracts and foreknowledge and confirmations and change notifications so that the products are in required order and at the right time in the next phase of supply chain.
Supply chain management is really process management applied to your materials information and finances as they move from supplier to manufacturer to wholesaler to retailer and to consumer.
Material flow includes a smooth flow of an item from the producer to the consumer.
The following are illustrative examples of a supply chain.
Let us look at each of these flows in detail and also see how effectively used in companies.
Supply chain management involves a great deal of diverse information bills of materials product data descriptions and pricing inventory levels customer and order information delivery scheduling supplier and distributor information delivery status commercial documents title of goods current cash flow and financial information etc.
Supply chain management can be defined as a systematic flow of materials goods and related information among suppliers companies retailers and consumers.
This is possible through various warehouses among.
A supply chain is the end to end system that creates products and services and delivers them to the customer.
Goods can also flow in a reverse direction in a supply chain from the customer back to producers for purposes such as returns reuse and recycling.
Returns management also known as the reverse supply chain is a vital part of the flow of products that doesn t fit perfectly into the clean supply chain cycle.
It involves picking up online orders from 3pl locations or from consumers addresses and accepting returns at retail locations.