{"id":45699,"date":"2022-02-18T13:33:59","date_gmt":"2022-02-18T19:33:59","guid":{"rendered":"https:\/\/www.projectmanager.com\/?p=45699"},"modified":"2025-04-22T14:08:47","modified_gmt":"2025-04-22T19:08:47","slug":"supply-chain-management","status":"publish","type":"post","link":"https:\/\/www.projectmanager.com\/blog\/supply-chain-management","title":{"rendered":"An Introduction to Supply Chain Management (SCM)"},"content":{"rendered":"

What Is Supply Chain Management?<\/h2>\n

Supply chain management (SCM) is the discipline that manages the flow of supplies through all of the stages of a production cycle. SCM applies to any organization that executes projects, produces goods or provides services, as those activities require a supply chain to maintain a steady flow of resources.\u00a0 That\u2019s where supply chain management comes in.<\/p>\n

Supply chain management is very important in the business administration field because it affects other key business areas such as operations management, inventory control and quality management. But what really makes SCM so important is that it can also become an important competitive advantage for businesses.<\/p>\n

The main goal of supply chain management is to make the most of the resources involved in a supply chain and be as productive as possible. People are managed and supplies require management as well<\/a>. Whether those supplies are goods or services, they must be accounted for and carried through from start to finish with deliberate control. To better understand SCM, let’s define what a supply chain is.<\/p>\n

What Is a Supply Chain?<\/h2>\n

A supply chain is a network that connects a company to suppliers of raw materials. It is also used to deliver a product to customers. The better the supply chain management, the more of a competitive advantage the company has.<\/p>\n

Supply chains are steps that are required to get raw materials, products or services from the original state to the customer and improve customer relations. Large companies and projects usually have more than one supply chain, which is known as a supply network. Having supply chain managers and supply chain management is key to delivering customer value and maximizing the efficiency of your supply network.<\/p>\n

Project management software can help you manage your supply chain and supply network. ProjectManager<\/a> is a cloud-based work and project management software that has visual workflow features, such as kanban boards, that help keep your teams working at capacity without excess raw materials that need storage space. Get started with ProjectManager today for free!<\/p>\n\"\"<\/a>\n

Supply Chain Management Process<\/h2>\n

The supply chain process is fundamental to good supply chain management. It is used by companies to make their supply chain as efficient and cost-effective as possible and deliver customer value and give them a competitive advantage. There are five steps to the supply chain process. They are as follows.<\/p>\n

1. Planning<\/h3>\n

To control inventory and the manufacturing process, companies must plan to match demand with supply, which is known as supply chain planning<\/a>. This prevents overspending on warehouse space or not having raw materials needed for your manufacturing and slowing down delivery of product.<\/p>\n

2. Sourcing<\/h3>\n

This step involves finding those vendors who can get the goods and services you need when you need them. Sourcing is how you get supplies when you need them and meet the demand of your customers<\/a>.<\/p>\n

3. Making<\/h3>\n

Here is where those raw materials you procured are made into the products that meet your customers\u2019 demand. This is where assembling, testing and packing occurs. Getting customer feedback is key to delivering customer value.<\/p>\n

4. Delivering<\/h3>\n

Getting your finished product to the customer is the next crucial step in the SCM process. If you\u2019re not able to get what you make to your customers all the previous steps are for naught. This makes delivering key to supply chain performance.<\/p>\n

5. Returning<\/h3>\n

Returning or reverse logistics<\/a> is part of what\u2019s called post-delivery customer support process. It is important to have a clear channel for returns or risk tarnishing your brand. The company can then take these low quality, defective or expired materials and return them to their suppliers.<\/p>\n

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Parts of a Supply Chain Model<\/h2>\n

To get the most out of SCM requires looking at the big picture in terms of an organization’s management. No longer is managing an individual company function enough. The integration of all activities involved in the supply chain is necessary: that means integration between different departments, such as purchasing and marketing.<\/p>\n

Supply chain management also needs integration and collaboration between buyers and suppliers, joint product development, common systems and shared information. Here are the most important parts of any SCM system or model.<\/p>\n