Key Concepts in Supply Chain Management

Supply Chain Management (SCM) involves coordinating a network of organizations and activities to produce and deliver products efficiently. Key concepts include: 1. **Procurement**: Sourcing raw materials or goods. 2. **Production**: Transforming materials into finished products. 3. **Logistics**: Managing the transportation and storage of goods. 4. **Distribution**: Delivering products to retailers or customers. 5. **Collaboration**: Working with suppliers and partners to enhance efficiency. 6. **Demand Forecasting**: Predicting customer needs to optimize inventory. Effective SCM reduces costs, improves product availability, and enhances customer satisfaction, contributing to overall business success.