What does Supply Chain Management (SCM) involve?

Supply Chain Management (SCM) involves a comprehensive approach to managing and optimizing the flow of goods, information, and finances as products move from suppliers to manufacturers to wholesalers to retailers all the way to the end customer. The primary focus of SCM is to ensure that every link in this chain operates smoothly and efficiently.

Managing networks of facilities that procure materials is a core component of SCM. This encompasses the coordination of raw materials purchasing, inventory management, production planning, and distribution logistics. Effective SCM leads to reduced operational costs, minimized waste, and improved delivery timelines, thereby enhancing customer satisfaction and competitiveness in the market.

By contrast, creating marketing campaigns for finished products, conducting financial audits of supply sources, and regulating prices in consumer markets pertain to different functional areas within a business. Marketing campaigns relate to how products are presented and sold to consumers, financial audits focus on the assessment and compliance of financial records and practices, and price regulation deals with policy aspects of economics rather than the logistics and management of supply chains. Therefore, the emphasis on managing networks of facilities in SCM is what substantiates the answer.