Supply Chain Management

Supply Chain Management is the process of handling the entire production flow of products and services - Starting from availing raw materials to enterprise, to deliver the product or service to the customer.

Supply Chain Management (SCM) is defined as the design, planning, control, and monitoring of supply chain activities. The main objective of SCM is to increase the efficiency of the supply chain.

By adopting this methodology, the manufacturer will be available with correct information regarding product requirements, which will help reduce excess inventory.

SCM Has Six Main Components


The Supply chain manager outlines the plan required to accept raw material, manufacturing products, testing products, shipping, and delivering the products. SCM needs to be active and efficient, provide excellent service to customers, and achieve enterprise goals.


Companies choose suppliers to supply goods and services required for manufacturing the product. Moreover, companies need to monitor the process and manage the supplier relationship.


Supply Chain manager organizes various activities like manufacturing, testing, shipping, and delivering the product. Most industry measures the quality of the product, employees productivity, and production output to measure the enterprise’s work quality.


Logistic service involves various activities like coordinating with the customer’s order, dispatching the order, and providing invoices to the customer and receiving payments.

Return Process

The supplier needs a responsive network of services. They should be flexible in taking the product back, checking the defective product, and replacing it with a new product. The network should be designed to carry out the process seamlessly.

Other Process

SMC need various other process integrated to carry out a seamless process. The different process includes finance, IT, portfolio management, HR, sales, and quality assurance.

Why is Supply Chain Management Important ?

Supply chain management has become a significant aspect as implementing it can reduce cost and time in the production cycle. SMC helps manufacturers and retailers updated with present products requirements. As soon as the product is sold out, it can be restocked quickly with SMC.

It can be further improved by analyzing the data from the supply chain.

SMC Helps To Identify Root Problems

Supply chain management rectifies root problems by analyzing the data. If a customer order a huge product quantity than the manufacturer could supply, then the customer may complain of poor service. To avoid such a situation, SMC can play a huge role by providing updated data through data analysis.

Improve Services

Analytical software help analyze the data and allocate resources and schedule further work based on sales forecast and product ordered by the customer. A manufacturing company can provide customers with a delivery date with the help of SMC.

To Optimize Price

Seasonal products are usually sold at a discounted price at the end of the season. SMC help to optimize product prices, and to use analytical tools can help improve product price margin.

Best Feature of Supply Chain Management

Supply Chain Management changes the entire process of a company. It provides a more efficient and effective management process and increases productivity. The essential features of SMC are as follow:

Increase Connectivity and Collaboration

SMC helps improve connectivity with all processes in the business. By accessing unstructured data from social media and structured data from the Internet of Things (IoT). By building such strong inter-network, the collaboration between various business units increases.

Cognitive Enabled

Most Supply chain in the industries are automated and self-learning. Leveraging Artificial Intelligence (AI) in the supply chain can make it more intelligent by making it more collating, coordinating, and conducting self decisions.


Analytics capabilities must be scaled with data in real-time. It helps to erase latency in SMC, and insight will be more comprehensive and fast.


It is essential for manufacturing, production, and other various companies to adopt this technology to improve and enhance the services for the better growth of the company.