What is SCM (Supply Chain Management)?
                     What is SCM 
(Supply Chain 
Management)?
INTRODUCTION
Supply chain management (SCM) 
is the optimization of a product's 
creation and flow from raw 
material sourcing to production, 
logistics and delivery to the final 
customer.
Source: www.techtarget.com
INTEGRATED 
PLANNING 
SCM encompasses the integrated 
planning and execution of 
processes required to manage the 
movement of materials, 
information and financial capital 
in activities that broadly include 
demand planning, sourcing, 
production, inventory 
management and storage, 
transportation or logistics and 
returning excess or defective 
products
Source: www.techtarget.com
Benefits of supply 
chain management
• better ability to predict and 
meet customer demand
• better supply chain visibility, 
risk management and 
predictive capabilities
• fewer process inefficiencies 
and less product waste
• improvements in quality
Source: www.techtarget.com
Benefits of supply 
chain management 
cont.
• increased sustainability, both 
from a societal and an 
environmental standpoint
• lower overhead
• improvements in cash flow
• more efficient logistics
Source: www.techtarget.com
Plan
Using supply chain analytics and 
materials management features 
in ERP systems, organizations 
create strategic plans to meet 
customer demand for product and 
avoid a bullwhip effect.
Source: www.techtarget.com
Source
 Organizations identify and select 
vendors that can supply materials 
in a streamlined and efficient way 
according to agreements. Supply 
chain collaboration starts at this 
stage and is important 
throughout the supply chain 
management process.
Source: www.techtarget.com
Make
In this stage, products are 
manufactured. It includes 
scheduling the production, 
testing, ensuring compliance 
requirements are followed, 
packing, storage and release.
Source: www.techtarget.com
Deliver
The delivery stage pertains to 
logistics and focuses on getting 
finished goods to consumers, in 
whatever manner of 
transportation is needed.
Source: www.techtarget.com
Return
The return stage includes all 
product returns, including 
defective products and products 
that will no longer be supported. 
This stage also includes elements 
from other stages, including 
inventory and transportation 
management.
Source: www.techtarget.com
Role of supply chain 
management 
software
• supply chain planning software 
for activities such as demand 
management
• supply chain execution 
software for activities such as 
day-to-day manufacturing 
operations
• supply chain visibility software 
for tasks such as spotting and 
anticipating risks and 
proactively managing them
Source: www.techtarget.com