What does supply chain management (SCM) seek to achieve?

Supply chain management (SCM) seeks to achieve synchronization with both suppliers and customers. The essence of SCM is to create a seamless flow of products, information, and finances across the entire supply chain, from raw materials through to end consumers. This synchronization allows organizations to effectively align their operations with the needs and demands of customers while simultaneously ensuring that suppliers can meet those demands efficiently.

By embracing this synchronization, SCM helps in minimizing delays, reducing costs, and enhancing service levels, enabling companies to respond more agilely to market changes and customer preferences. This interconnectedness across the supply chain is critical in today’s business environment, where responsiveness and adaptability are key to maintaining competitive advantage.

While alignment with customer preferences is important, SCM encompasses a broader scope that includes managing relationships and processes with suppliers as well, which is essential for achieving optimal performance in the supply chain. The focus on only internal processes or merely increasing inventory levels does not capture the full breadth of objectives that effective SCM aims to achieve.