Supply Chain Management – Here we are providing full guide for Supply Chain Management (SCM). Find all details for Supply Chain Management like Definition, Advantages of having a supply chain management etc. Recently we provide complete details for Acid Test Ratio or Quick Ratio.

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Supply Chain Management

Supply chain-management is the activity of managing goods from one place to another. Supply chain management is the management of materials, information, and finances as they move in a process from supplier to manufacturer ,from manufacturers to wholesaler ,From wholesaler to retailer and to ultimate consumer from retailers. Supply chain management involves coordinating and integrating these flows both within and among the organizations.

Includes :

Supply chain-management includes the movement and storage of raw materials, work in progress inventory, and finished goods from point of origin to point of consumption. Here point of origin means wherever production takes place and point of consumption means wherever the ultimate consumption happens.

As per APICS dictionary :


Supply chain management has been defined as the “design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally”

Advantages of having a supply chain management :

1. There’s always a risk associated with supply of raw materials and other consumables from Vendors.Supply chain management helps to mitigate risks associated with acquiring raw materials and delivering products or services by gaining a competitive advantage over our rivals in the market where we are operating.

2. It reduces the waste, overhead costs and shipping delays in a scientific way.

3. Sometimes due to backorder of demands for specific product of a business concern ,the customers may switch over form our product to the rival’s offers and we may significantly lose the customers. An effective Supply Chain Management helps in reducing such risks associated with production.

4. It incorporates quality techniques, such as quality management systems, to improve operations.Thus overall performance can be improved.

5. Minimizes inventory holding costs for example if better SCM practices are being employed then an organization can manage their inventory in such a way that it can get the needed supplies when ever required instead of having them in their go down even during the season of lower demand for their products.

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