SELECT YOUR LANGUAGE

At the most fundamental level, supply chain management (SCM) is management of the flow of goods, data, and finances related to a product or service, from the procurement of raw materials to the delivery of the product at its final destination.

Although many people equate the supply chain with logistics, logistics is actually just one component of the supply chain. Today’s digitally based SCM systems include material handling and software for all parties involved in product or service creation, order fulfillment, and information tracking―such as suppliers, manufacturers, wholesalers, transportation and logistics providers, and retailers.

​

Supply chain activities span procurement, product lifecycle management, supply chain planning (including inventory planning and the maintenance of enterprise assets and production lines), logistics (including transportation and fleet management), and order management. SCM can also extend to the activities around global trade, such as the management of global suppliers and multinational production processes.

​

The supply chain of the future is all about responsiveness and the customer experience—understood and managed within a network rather than a linear model. Every node of the network must be attuned and flexible to the needs of the consumer while also being capable of addressing factors such as sourcing, trade policies, modes of shipment, and more.

 

Advanced technology will increasingly be used to improve transparency and visibility throughout this network, as well as to further enable connectivity and SCM utilization. The entire SCM planning function will become more intelligent to take consumer demands into account. The ability to adapt will be a mandate.

In the past, supply chain planning has been a periodic business exercise. Heading into the future, it will be continuous. Future SCM systems will also bring tighter alignment between planning and execution, which is not a current state for most enterprises. The need for speed and accuracy in SCM is only going to increase. Make sure your supply chain is ready for the future by supporting it with an intelligent SCM system.

​

By Jason Torrents