5 Parts of SCM

Supply Chain & Logistics Management
#1

In SCM, the supply chain manager coordinates the logistics of all aspects of the supply chain which consists of five parts:

  • The plan or strategy
  • The source (of raw materials or services)
  • Manufacturing (focused on productivity and efficiency)
  • Delivery and logistics
  • The return system (for defective or unwanted products)
    The supply chain manager tries to minimize shortages and keep costs down. The job is not only about logistics and purchasing inventory. According to Salary com, supply chain managers “oversee and manage overall supply chain and logistic operations to maximize efficiency and minimize the cost of organization’s supply chain."1

Productivity and efficiency improvements can go straight to the bottom line of a company. Good supply chain management keeps companies out of the headlines and away from expensive recalls and lawsuits.