Supply chain management (SCM) is the process of managing the flow of

goods and services to and from a business. It includes every step involved in
turning raw materials and components into final products and getting them to
the customer.
Investopedia
Supply Chain Management (SCM): How It Works & Why It's Important
What Is Supply Chain Management (SCM)? Supply chain management (SCM) is the process of managing the flow of goods
and services to and from a business, including every step involved in turning raw materials and components into final
products and getting them to the ultimate customer.

SCM applies to any organization that executes projects, produces goods, or

provides services. It consists of five main components: planning, sourcing,
manufacturing, delivery, and returns.

SCM can help organizations achieve a sustainable competitive advantage and

maximize customer value. Some benefits of SCM include:
 Increased productivity
 Reduced cost
 Customer satisfaction
 Better risk management
 Good supplier relations
 Consistent quality assurance
 Continuous cash flow
 Controlled inventory management
Some challenges of SCM include:

 Risk management
 Managing customer expectations
 Fluctuating prices
 Unanticipated delays
 Adaptability to changing trends
 Digitalization
 Port congestion
Here are some tips for implementing a supply chain management system:

 Know what you need

 Shop around
 Make a realistic plan
 Map the risks and considerations
 Communication is key
 Train your staff
 Test early and often
 Monitor your system's progress