Categories: Magento

Supply chain management or SCM manages how goods are transported and stored. Goods include raw materials, inventory in process, and completed products from the initial point of consumption. Retailers, manufacturers, wholesalers and other commercial channels are interconnected to supply the requested goods to the consumer. The process involves design, planning, execution and control of the supply to establish a value, logistics and other key factors.

SCM is conducted in the following areas:

  • Operations management – It is overseeing, designing, and controlling of the operations of the production of goods and services.
  • Logistics – This manages the flow of goods from the point of origin (for example manufacturer) to consumption (for example the consumer).
  • Procurement – This is receiving goods and services from an external source.
  • Information Technology – An area of technology that manages data on a computer.

Magento® provides eCommerce businesses with integrations that simplify the supply chain process.

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Supply Chain Management
Definition of "Supply Chain Management" by Chat GPT: Supply Chain Management (SCM) is the management of the flow of goods and services from the supplier to the end customer. It involves the coordination and optimization of all activities involved in the sourcing, procurement, production, transportation, storage, and distribution of products and services. SCM aims to achieve maximum efficiency and effectiveness in the supply chain, while also minimizing costs and improving customer satisfaction.
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