What is supply chain management in simple words?

Supply chain management is the handling of the entire production flow of a good or service — starting from the raw components all the way to delivering the final product to the consumer.

Supply chain management (SCM) combines analytical thinking with practical steps. The goal is to manage the flow of goods and services from the suppliers of raw materials to the final product's use by consumers. When done right, it benefits businesses and customers.

What Is a Supply Chain Management Example? Supply chain management is the practice of coordinating the various activities necessary to produce and deliver goods and services to a business's customers. Examples of supply chain activities can include designing, farming, manufacturing, packaging, or transporting.

The Top-level of this model has five different processes which are also known as components of Supply Chain Management – Plan, Source, Make, Deliver and Return.

There are four customary stages in a product's life cycle: the introductory phase, the growth phase, the maturity phase and the decline phase. Each phase is markedly different and often requires different value chains. Supply managers need to craft supply strategies that reflect the unique needs of each phase.

Supply chain logistics coordinate the storage and shipping of goods and services across the supply chain. The practice begins with raw materials, continues on to manufacturing and/or distribution and ends when a business delivers finished goods to the customer or when products are returned to their final destination.

The term "logistics" applies to activities within one company or organization involving product distribution, whereas "supply chain" additionally encompasses manufacturing and procurement, and therefore has a much broader focus as it involves multiple enterprises (including suppliers, manufacturers, and retailers) ...

There are four major elements of supply chain management: integration, operations, purchasing and distribution.

The physical analogy of a long, interconnected set of supplier operations that eventually lead to the shipping of a finished product was first popularized by Keith Oliver at Booz Allen Hamilton.

The basic difference between Logistics and Supply Chain Management is that Logistics management is the process of integration and maintenance (flow and storage) of goods in an organization whereas Supply Chain Management is the coordination and management (movement) of supply chains of an organization.

Yes, it's a good career because supply chain management job opportunities are in plenty. Additionally, supply chain jobs usually pay well and there is a great room for career growth. The career path also offers excellent work satisfaction, and it's hard to get bored.

A 3PL manages outsourced logistics and distribution activities for a specific customer, while a 4PL manages customer 3PLs and provides complete visibility within a one-stop shop, says Don Klug, vice president of sales distribution center management, Penske Logistics.

Production is one among the most important aspects of this system. It is only possible when all the other components of the supply chain are in tandem with each other. For the process of production to start it is essential that proper planning and supply of goods, as well as the inventory, are well maintained.

While supply chain is a very broad career field, it has 7 primary functional areas: Purchasing, Manufacturing, Inventory Management, Demand Planning, Warehousing, Transportation, and Customer Service.

The broad objectives of Supply Chain Management are to create value, build a competitive infrastructure, leverage worldwide logistics, synchronise supply with demand and measure performance.