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Supply chain management (SCM) is the oversight of materials, information, and finances as they move in a process from supplier

to manufacturer to wholesaler to retailer to consumer. Supply chain management involves coordinating and integrating these flows both within and among companies. It is said that the ultimate goal of any effective supply chain management system is to reduce inventory (with the assumption that products are available when needed). As a solution for successful supply chain management, sophisticated software systems with eb interfaces are competing with eb!based application service providers (AS") who promise to provide part or all of the SCM service for companies who rent their service. Supply chain management flows can be divided into three main flows#

$he product flow $he information flow $he finances flow

$he product flow includes the movement of goods from a supplier to a customer, as well as any customer returns or service needs. $he information flow involves transmitting orders and updating the status of delivery. $he financial flow consists of credit terms, payment schedules, and consignment and title ownership arrangements. $here are two main types of SCM software# planning applications and e%ecution applications. "lanning applications use advanced algorithms to determine the best way to fill an order. &%ecution applications trac' the physical status of goods, the management of materials, and financial information involving all parties. Learn More

Supply chain management software selection for manufacturers MS Supply chain planning and e%ecution

Some SCM applications are based on open data models that support the sharing of data both inside and outside the enterprise (this is called the e%tended enterprise, and includes 'ey suppliers, manufacturers, and end customers of a specific company). $his shared data may reside in diverse database systems, or data warehouses, at several different sites and companies. (y sharing this data )upstream) (with a company*s suppliers) and )downstream) (with a company*s clients), SCM applications have the potential to improve the time!to!mar'et of products, reduce costs, and allow all parties in the supply chain to better manage current resources and plan for future needs. Increasing numbers of companies are turning to eb sites and eb!based applications as part of the SCM solution. A number of ma+or eb sites offer e!procurement mar'etplaces where manufacturers can trade and even ma'e auction bids with suppliers.

Related glossary terms: wor' in progress ( I"), advanced shipping notice (AS,), demand flow scheduling system, vendor!managed inventory (-MI), ."/ (third!party logistics), supply chain sustainability, warehouse management system ( MS) This was last updated in August 0111 Dig Deeper
ERP or best-of-breed procurement software? Five uestions to as!

2eciding between &3" and best!of!breed procurement software can be a tough challenge for manufacturers. As'ing the right 4uestions can ma'e things easier, according to e%perts.
"mplementing supply c#ain management abroad raises tric!y issues

Introducing SCM software to manufacturing facilities in developing countries is no small tas'. Industry e%perts offer their advice for dealing with technological and cultural barriers.
$etting t#e most out of demand-driven supply c#ain tec#nology

5ueled by technology such as demand signal repositories and "6S, the demand! driven supply chain can respond 4uic'ly and effectively to customer demand.

People w#o read t#is also read%%% o Implementing supply chain management abroad raises tric'y issues o Supply chain management (SCM) modules guide o hat is ."/ (third!party logistics)7 ! 2efinition from hatis.com o hat is warehouse management system ( MS)7 ! 2efinition from hatis.com o hat is wor' in progress ( I")7 ! 2efinition from hatis.com Resources from around t#e &eb
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Anil 8upta describes the *91 best practices of supply chain management. SearchSA".com offers a news, advice and other resources about supply chain management. :ere*s a collection of resources for various topics related to supply chain management. ;essie Chimni e%plains supply chain performance management. 0101Software provides supply chain management software demos.

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