Search Investopedia

Supply Chain Management - SCM

Filed Under » ,
Dictionary Says

Definition of 'Supply Chain Management - SCM'

The management and coordination of a product's supply chain for the purpose of increasing efficiency and profitability.
Investopedia Says

Investopedia explains 'Supply Chain Management - SCM'

Typically, SCM will attempt to centrally control or link the production, shipment and distribution of a product. By managing the supply chain, companies are able to cut excess fat and provide products faster. This is done by keeping tighter control of internal inventories, internal production, distribution, sales and the inventories of the company's product purchasers.

Related Definitions

  •

    Inventory

    The raw materials, work-in-process goods and completely finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale. Inventory ...
    Read More »

  • Just In Time - JIT

    An inventory strategy companies employ to increase efficiency and decrease waste by receiving goods only as they are needed in the production process, thereby reducing inventory ...
    Read More »

  • Supply Chain

    The network created amongst different companies producing, handling and/or distributing a specific product. Specifically, the supply chain encompasses the steps it takes to get a good or ...
    Read More »

    • Bottleneck

      A point of congestion in a system that occurs when workloads arrive at a given point more quickly than that point can handle them. The inefficiencies brought about by the bottleneck ...
      Read More »

    • Logistics

      The overall management of the way resources are moved to the areas where they are required.
      Read More »

    • Do It Right The First Time - DRIFT

      A theory from managerial accounting that relates to just-in-time (JIT) inventory (where a company only receives goods as they are needed to cut down on inventory costs) and production ...
      Read More »

    • Product Recall

      The process of retrieving defective goods from consumers and providing those consumers with compensation. Recalls often occur as a result of safety concerns over a manufacturing defect ...
      Read More »

    • Organizational Structure

      Explicit and implicit institutional rules and policies designed to provide a structure where various work roles and responsibilities are delegated, controlled and coordinated. ...
      Read More »

    • W.P. Carey School of Business

      The school of business at Arizona State University. It enrolls approximately 7,800 undergraduate and 1,500 graduate-level students. The W.P. Carey School of Business offers undergraduate ...
      Read More »

    • Marriott School of Management

      The school of business at Brigham Young University (BYU). Its enrollment is approximately 1,900 undergraduate and 1,100 graduate-level students. The Marriott School of Management offers ...
      Read More »

Articles Of Interest

Sponsored links
Hot Definitions
Partner Links
Suggested Definitions