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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