What is supply chain management?
Supply chain management is a newer term from business administration that is becoming increasingly important for individual companies, but at the same time goes beyond their boundaries. A short and understandable explanation will tell you what exactly is meant by this.
Supply chain management - an explanation of terms
You can get a rough idea of what supply chain management (SCM) is by translating the term into German. A proper translation is "supply chain management".
- With the SCM it is therefore a matter of establishing a chain of partners of a company who are involved in the delivery of the respective products or services involved, coordinate in order to work together effectively enable.
- These partners naturally include the suppliers and customers. But the dealers and various logistics service providers are also involved in the process.
- However, since there is still no precise and generally recognized definition of supply chain management, some further information on this as well as a demarcation from the concept of logistics will be very useful be.
How does SCM differ from logistics?
Supply chain management is closely linked to the area of logistics, which aims to manage flows of goods, people, money, information, etc. to control and optimize. However, there are differences between the two areas.
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- In contrast to logistics, the SCM does not focus on individual companies, but on various competing supply chains.
- It is analyzed insofar as a value creation process in which a large number of self-employed Institutions, organizations and companies involved must be optimally structured and coordinated can.
- As a result, logistics corresponds to one sub-area of supply chain management, and the other as well Areas such as the manufacture and marketing of products as well as controlling and corporate management includes.
