Learn in the textbookInformation Systems That Integrate Management Resources (CRM, SCM, ERP, Knowledge Management)
DefinitionSCM (supply chain management) manages the flow from raw-material procurement through production and logistics to the consumer as one connected chain, business partners included, and optimizes it as a whole.
ExplanationThis chain of steps is called the supply chain (サプライチェーン), and it often spans several companies. When each company shares demand and inventory information, overproduction and stockouts fall and delivery times get shorter.
AnalogyLike farmers, wholesale markets, and supermarkets telling each other how much produce to expect, so vegetables reach the table with nothing left over and nothing running out.
Memory hookSupply Chain = a chain of supply. Every company from supplier to store is linked like the rings of one chain.