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FAQ on Supply Chain Management
What is a supply chain?
A supply chain is the end-to-end processes, vendors, networks and other infrastructure necessary for producing and delivering a final product or service, from the suppliers of raw materials to the end user. Supply chain management entails predicting and managing demand, finding source materials and parts, production scheduling (where and when), manufacturing, assembly, testing, inventory storage, distribution, order tracking and delivery.
What's the difference between a supply chain and a value chain?
The supply chain focuses on getting source materials into manufacturing operation smoothly and economically. The value chain looks at every step in the supply chain management process - from source materials to delivery of the final product to the customer. The objective of the value chain is maximum value (to the customer) at the least possible cost (to the business).
What is supply chain management?
Supply chain management (SCM) is the process of optimizing the shipment of goods and services from supplier to customer. The goals of SCM are to optimize production, decrease manufacturing time, minimize inventory, streamline order fulfillment and reduce cost. Today's supply chains for mid and large companies span the globe, with suppliers and partners in multiple countries and multiple time zones. As such, the use of quality supply chain management software is critical to success.
Why is supply chain management so important?
In today's market environment, customers are in the drivers seat and manufacturers jump to meet customer demands for varied product choices, painless order fulfillment and fast shipping. Businesses that improve upon their supply chain management are simply more competitive and profitable in the worldwide market for their products and services.
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