Supply Chain ManagementSupply Chain Management. Key Concept Explanation. Research Paper (Research Paper Sample)

Supply Chain Management
Name
Institutional Affiliation
Supply Chain Management
Key Concept Explanation
Supply chain management (SCM) is a process through which goods and services are transported from one place to the next after production. The goods, in this case, are the raw materials and finished goods while the services are the production services. Suppliers move raw materials to the manufacturers and transfer finished products from the production companies to the final users. Supply chain management concept is an essential aspect because it can increase the value of goods and services as well, making a company gain a competitive advantage. Supply chain management, therefore, manages the flow of services and products including all processes that ensure the transformation of raw materials into finished products.
SCM activities are streamlined in such a manner that the supply side of the business organization positions the company to have the upper hand in the market and maximizing the customer value. In this respect, SCM can, therefore, be seen as supplier efforts of developing and implementing supply chain activities that are economical and efficient. SCM encompasses a broad range of activities including industrial production, product development, and information systems required to direct organizational undertakings. The primary work of supply chain management is linking or centrally attempting to control production, shipment, and product distribution. The ability to manage supply chain enables business organizations to effectively reduce cost excesses as well as delivering finished products to the final users much faster. This key objective is achieved by continuously controlling internal production, internal inventories, sales, production, and company vendors’ inventories.