What is Supply Chain Management?

Supply chain management (SCM) comes from the area of logistics. The definition is as follows: “The term supply chain management describes the collaborative planning and controlling of cross-enterprise value chain systems with network structures, whose parts are connected by processes of good-, finance-, and information flows.”

In other words: supply chain managers develop and administer the logistical material flow across enterprises. The single logistical areas of procurement, production, distribution, as well as disposal and transport are put together and form the individual parts of a supply chain.