Final answer:
Supply Chain Management (SCM) involves the coordination and management of the flow of goods, services, and information. It helps companies optimize their supply chain, reduce costs, improve efficiency, and enhance customer satisfaction.
Step-by-step explanation:
Supply Chain Management (SCM) refers to the coordination and management of the flow of goods, services, and information from the point of origin to the point of consumption.
It involves planning and controlling the entire process, including sourcing, procurement, production, distribution, and customer service. SCM helps a company by optimizing the supply chain, reducing costs, improving efficiency, and enhancing customer satisfaction.
For example, SCM can help a company minimize inventory levels while ensuring products are available when needed. It can also streamline transportation and logistics, reducing transportation costs and delivery time.
SCM can lead to better collaboration between suppliers, manufacturers, and retailers, resulting in improved coordination and responsiveness to customer demands.