Supply Chain Management (SCM)

Introduction to the supply chain concept

In a production enterprise, the time required to complete a product is largely dependent on the supply of raw materials, assembly elements or single pices on all levesl of the production chain. The term "supply chain" therefore refers to all links of the supply chain.

  • purchasing,
  • supply,
  • stock management,
  • transportation,
  • maintenance,
  • ...

The term "supply chain" is comprehensive, i.e.. in particular within the enterprise, but also includes all suppliers and their subcontractors.

Supply chain

What is SCM?

The term SCM (Supply Chain Management) refers to to the tools and methods whose purpose is to improve and automate the supply through the reduction of stock and delivery times. The term "just-in-time" production characterizes the concept of minimizing stock throughout the entire production chain.

SCM tools are based on production capacity information that is present in the information system of the enterprise to automatically place orders. SCM tools are therefore strongly correlated with Enterprise Resource Planning (ERP) of the enterprise.

Ideally, a SCM tool makes it possible to track the passage of pieces (traceability) between les different parties of the supply chain.

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