Supply chain management (SCM) is the process of planning, organizing, and controlling the flow of goods, information, and resources between the different parts of the supply chain to meet customer requirements in a timely and cost-effective manner.
The term "supply chain management" was first coined by Keith Oliver of Booz Allen Hamilton in 1982. The concept of SCM began to gain traction in the early 1990s as businesses realized the importance of having a coordinated and integrated approach to managing their supply chains.
SCM involves all activities in the procurement and distribution of goods or services, from supplier to customer. It includes both upstream (supplier-related) and downstream (customer-related) activities.
The main objective of SCM is to ensure that the right products or services are delivered to the right place at the right time while minimizing costs and maximizing value. In other words, SCM is about getting the right things to the right people at the right time, most efficiently and effectively as possible.
SCM is a complex process that involves coordination and collaboration between different parties, including suppliers, manufacturers, distributors, retailers, and customers. To succeed, SCM requires an integrated approach that considers all aspects of the supply chain.
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