What is Supply Chain Management?
Supply chain management is the broad range of activities required to plan, control and execute a product’s flow, from acquiring raw materials and production through distribution to the final customer, in the most streamlined and cost-effective way possible. Supply chain activities cover everything from product development, sourcing, production and logistics, as well as the information systems needed to coordinate these activities.
What is the difference between logistics and supply chain management?
These terms are frequently used interchangeably. Logistics is an activity that makes up supply chain management. Logistics is the process that manages movement, storage and flow of goods, services and information. Supply chain management links logistics with other processes such as purchasing, customer service and manufacturing to develop a competitive advantage.
What is the main goal of supply chain management?
Supply chain management serves a strategic purpose. An efficient supply chain management process optimizes inventory and cost management, manufacturing, procurement, product data management, logistics, order management, product lifecycle management and supply chain planning to minimize costs and time lost while maximizing profit.