Supply chain management (SCM) is the management of supply chain activities with the intent to maximize value to customers while achieving a sustainable advantage over the competition. SCM comprises the efforts of companies and their supply chain partners to develop and run supply chains in the most effective and efficient way. SCM oversees each process involved from start to finish. It begins with the delivery of raw materials from the supplier to the manufacturer, and ends as the finished product or service is delivered to the end user.
SCM is Based on Two Core Principles
- The cumulative effort of multiple organizations goes into almost every product that reaches the end user.
- While supply chains have been around for a long time, until recently most businesses didn’t look past their internal operations.
Without having complete understanding of all the supply chain activities occurring internally and externally, supply chains often become ineffective, which results in problems delivering the final product. An effective and efficient supply chain begins with its participating organizations being linked through both:
- Physical Flows. This is the most visible part of a supply chain. It involves moving and storage of goods and materials.
- Information Flows. To be efficient, supply chain partners need to have continual communication to coordinate their long-term plans. Communication of up-to-date, well-organized information keeps the flow of materials and goods going without delays and hassles.
American Western Distribution specializes in world-class supply chain management distribution and transportation services. Contact us for a consultation and quote.