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.
Definition of "Supply Chain Management" by Chat GPT: Supply Chain Management refers to the management of the flow of goods and services from the point of origin to the point of consumption. It involves coordinating and overseeing various processes, such as procurement, production, logistics, and distribution, to ensure that products are delivered to customers in a timely and cost-effective manner. Effective supply chain management can help companies optimize their operations, reduce costs, improve customer satisfaction, and gain a competitive advantage in the marketplace.
« Back to Glossary Index