Supply chain management
Supply chain management refers to the ways a company controls all the steps involved in manufacturing and delivering a product or service.
Supply chain management aims to ensure goods or services are created:
- In the right quantity
- At the desired level of quality
- On time
- In the right place
- At a competitive price
Achieving this requires carefully managed logistics (coordination of materials and processes). To manage their supply chains effectively, companies must:
- Know their customers’ needs
- Understand how much of a product or service customers require in a given timeframe
- Decide how much inventory to produce and maintain
- Acquire the right raw materials at the right price from trusted suppliers
- Set and uphold quality standards