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Supply chain management is the streamlining of a business' supply-side activities to maximize customer value and to gain a competitive advantage in the marketplace. Supply chain management (SCM) represents an effort by suppliers to develop and implement supply chains that are as efficient and economical as possible.REAKING DOWN 'Supply Chain Management-SCM'. Typically, SCM will attempt to centrally control or link the production, shipment and distribution of a product. By managing the supply chain, companies are able to cut excess fat and provide products faster.
A supply chain is an organizational system used by companies to move products from their warehouses to consumers. Some supply management software automatically generates forms for ensuring a delivery contains the correct items.View slideshow of images above. commonly cited example of a supply management system is the auto manufacturing industry. It is common practice for a large firm to subcontract out specific parts, or modules, of the vehicle to independent companies. Each company is provided with the technology required to participate in the supply management system.