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supply chain management

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Financial Dictionary

Supply Chain Management - SCM

The management and coordination of a product's supply chain for the purpose of increasing efficiency and profitability.

Investopedia Commentary

Typically, SCM will attempt to centrally control or link the production, shipment, and distribution of a product. By managing the supply chain, companies are able to cut excess fat and provide products faster. This is done by keeping tighter control of internal inventories, internal production, distribution, sales, and the inventories of the company's product purchasers.

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Working Capital Works

See also: Inventory, Just In Time, Supply Chain

Also spelled: SCM

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