What is Supply Chain Management?
Supply chain management (SCM) is the central organization of a company's production resources and materials intended to streamline the production process and reduce costs on a continuing basis.
How Does Supply Chain Management Work?
A company's production operation contains material input components, each of which incurs a cost which is recovered in the price of the finished product. Much of market competition is based on keeping the prices of finished products as low as possible without sacrificing quality. For this reason, supply chain management (SCM) attempts to bridge this gap effectively by closely monitoring the cost a company pays for materials and from whom the materials are being procured. In addition, SCM monitors the operational procedures from start to finish in order to identify costly and unnecessary procedural steps.
Why Does Supply Chain Management Matter?
The activities comprised in SCM help a company to increase the efficiency of its production cycle while placing downward pressure on its costs as safeguard to maintain, and, where possible, increase profitability.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
Trendlines are one of the most common and helpful tools in a trader's kit. They are used to show a stock...Read More →
You've doubtless heard of the Oracle of Omaha and every investor's patron saint, Warren Buffett...Read More →
The nation's widespread drought is forecast to be costly for Americans as the prices of fuel and...Read More →