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Supply Chain Management (SCM) is the management of a product from its point of origin to its point of consumption.The organization has to put in place an efficient as well as cost effective system to ensure achievement of customer satisfaction, which is the ultimate objective of any business in the production or service industry, to assure revenue and profit generation.A broad range of activities have to be planned, implemented and monitored systematically to ensure smooth flow of material,money and information which in turn warranties success.


Changes in the business environment (e-business, joint ventures, partnerships,etc.) and increasing world trade have prompted a manifold increase in the importance of SCM. In the current global scenario only businesses with an established SCM can survive or flourish. It has become mandatory not only to integrate internal activities, but also to move beyond the boundaries of the enterprise and integrate activities throughout the value chain of multiple companies (raw material suppliers, outsourced activities, Maintenance, distribution, etc). SCM is a complex process, the success of which depends on all partners in the chain and their effective collaboration towards achieving a common objective of addingand increasing the value of the chain.

The present world gives much importance to specialization. This has been reflected in SCM too. Managements are outsourcing to specialized supply chain partners to utilize their skills. This allows the enterprises to focus on their core competencies and collaborate with the best-in-class partners to improve efficiency and performance value of the supply chain in a cost efficient timely manner.Specialized enterprises (eg: packaging, carriers, multimodal transportation, warehousing, etc) could provide their supply chain or logistical support to various companies.

Increased specialization /outsourcing and the need for collaboration with all the partnershas made information one of the prominent drivers of SCM. The intense scale at which information technology has improved and the dramatic fall in communication costs make effective integration possible.

An organization with an effective SCM can lower costs, increase profits, manage demand to ensure customer satisfaction; which contributesto the success of the organization.SCM capabilities can also be applied in medical missions and emergency situations like disaster relief operations. It can be extended to be a foundation for economic growth, job creation, decrease energy use and pollution, and even to sustain and improve human life.

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