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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.
Supply chain management is a conscious effort to run supply chains in the most efficient and effective way possible. Such strategies include product development, sourcing, production and logistics, each of which assists in creating quality products and coordinating their flow to the consumer.hen you enter a retail store, the products you see filling the shelves in each aisle are the result of supply chain management. Every product that reaches your shopping cart is there based on the cumulative effort of multiple organizations, typically referred to as the supply chain.