SCM is acronym of Supply Chain Management. At fundamental level Supply Chain Management is management of flow of goods and services from procurement of raw materials, production at various stages and movement of intermediates to the delivery of products at final destination to satisfy customer demand. A great Supply Chain
Management has to be customer-centric ensuring that customer is always delighted while ensuring that company is focusing on high value addition customers giving the what they want, what time they want and where they want.
History of SCM
Supply Chain Management shares its history with its more famous cousin ERP. In fact what was supposed to emerge as ERP is now known as SCM. All the resource planning in ERP is now done in Supply Chain Management as can be seen in their history.
What is not SCM
Supply Chain Processes involves transactions at various stages like indents, enquiries,quotations,purchase orders, material receipts, issues, productions, dispatch to directly to customers or through company depots. But various ERP modules which capture these transactions and provide visibility through reports and queries are not supply chain management as much as financial accounting is not financial management but critical for financial management.
So what is Modern SCM of 2020s
SCM as the name suggest is about Management of Supply Chain. It provides ability for planning, execution and control of supply chain transactions. It also provides visibility across the supply chain to its participants to that they can plan and respond better to emerging situations for business continuity and longetivity. SCM is technology solution to make supply chain and effectively enterprise smarter and more profitable.