What is Supply Chain Management (SCM)?

Supply Chain Management (SCM) is the management of the flow of goods and services and includes all processes that transform raw materials into final products. It involves the active streamlining of a business's supply-side activities to maximize customer value and gain a competitive advantage. SCM encompasses everything from product development, sourcing, production, and logistics, as well as the information systems needed to coordinate these activities. It is commonly used to reduce costs, improve efficiency, and enhance customer satisfaction.