What is SCM?
SCM stands for Supply Chain Management, i.e. the optimal management of supply chains throughout the entire production and shipping process, from the raw material level to delivery to the customer. The aim of SCM is to improve efficiency, quality, productivity and customer satisfaction across the entire supply chain. Without software support, it is not possible to monitor all the influencing factors involved in the process. With this in mind, some IT providers have specialized in the development of suitable systems.
The term SCM is very popular. Many logistics managers, even in smaller companies, now use the term "supply chain manager".
These are the most important SCM processes:
- Supply chain planning (SCP) refers to all activities that are intended to make future demand predictable and plannable. The entire supply chain is then adapted to these findings in order to meet future demand.
- Product Lifecycle Management (PLM) deals with a specific product from the idea generation stage through production to disposal.
- Procurement endeavors to ensure that the right quantity of the items required for production are delivered at the right time and in the right quality at the best possible price.
- Logistics management ensures the transportation and storage of goods along the entire supply chain.
- Manufacturing Execution Management (MES) optimizes the actual production of goods. The aim is to make production processes as efficient as possible without risking quality losses.
- Enterprise Asset Management (EAM) refers to the management and maintenance of production facilities along the supply chain.
