SCM, or Supply Chain Management, is the management of processes, activities and flows of materials, information and finance from suppliers through manufacturers and distributors to customers.

Supply Chain Management (SCM): the key to efficient logistics and satisfied customers

What is SCM?

Supply chain management (SCM) is a complex process of planning, managing and optimizing the flow of goods, services and information from raw material suppliers to the final consumer. It includes all logistics-related activities such as procurement, warehousing, production, distribution and sales. The goal of SCM is to create an efficient and seamless supply chain that minimizes costs, maximizes customer satisfaction, and reduces environmental impact.

History of SCM

The concept of SCM has evolved over the course of the 20th century. In the past, companies focused primarily on optimizing individual parts of the supply chain, such as manufacturing or distribution. In the 1980s, however, the perception of the supply chain as a whole began to take hold, and companies realised that its effectiveness depended on coordination and cooperation between all parties involved.

Use of SCM in the present

In today’s globalised world, SCM is a key success factor for businesses of all sizes. An efficient supply chain enables companies to respond faster to market demands, reduce costs and offer customers quality products and services at competitive prices.

SCM in manufacturing companies

In manufacturing companies, SCM is particularly important because it encompasses all activities from the procurement of raw materials to the distribution of finished products. Effective SCM can bring the following benefits to manufacturing companies:

  • Cost reduction: By optimizing the flow of materials and inventory, storage, transport and handling costs can be reduced.
  • Increased productivity: Effective production and distribution planning can lead to reduced downtime and increased productivity.
  • Quality improvement: By adhering to strict control processes and tracking goods, the number of defective products can be reduced.
  • Increased customer satisfaction: Fast and reliable deliveries of goods in the required quality lead to satisfied customers.


Supply chain management is a complex process that requires careful planning, implementation and continuous improvement. Companies that can manage their supply chain effectively are at a competitive advantage and are more likely to succeed.

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