Supply Chain Management (SCM) means supplier management and is the approach to control and coordinate networks for logistics in terms of organization and information technology. Supply chain management is the integration of the information systems of all companies involved in the value chain, from suppliers through manufacturing and production to the end customer.
Supply chain management involves the optimal planning and control of all business processes in this value chain. Included in this value chain are processes that deal with the demand for a good or service, as well as security, production and shipping processes. Supply chain management is designed to support the planning and execution of business processes and to ensure organizational adjustments to existing infrastructures in order to achieve optimal management decisions. Parts of supply chain management are supply chain security, which deals with security-related aspects in supply chain, logistics and transportation management, and supply chain sustainability( SCS), which ensures the sustainability ofsupply chains.
Supply chain management can consist of many different activities. In simplified terms, the raw material for manufacturing the product could be supplied by a raw material supplier. One of the first processing stages could be production, where the product is manufactured. The finished product could be delivered through appropriate distribution channels to retailers, where it is offered for sale to the end customer.
The aim of supply chain management is to shape the fragmented and uncoordinated sub-processes within the supply chain into effective and, above all, cross- interface business processes between suppliers, manufacturers, customers and logistics service providers in order to avoid gaps in supply chains and in production processes.