There are so many ways to describe the world of supply chain management. I’m going to keep it simple and go with the most basic one I can think of: Supply Chain Management, or SCM. SCM is the management of the entirety of the supply chain in the production, distribution, or consumption of a product or service. The most common use of this term is when talking about the supply chain from initial development to the final consumption.
Supply chain management is a very broad and varied term. There are literally dozens of different implementations and businesses that are engaged in this aspect of the supply chain. Each company has its own unique way to set their expectations and how they will manage the supply chain. The most common of these is for the product supplier to set their own quality and quantity standards.
This is important when talking about the supply chain because companies tend to set their own standards because they have their own budgets for what they will produce. However, even within a company, there are many different ways that supply chain management can be implemented. For example, each company has its own marketing department and sometimes even its own sales department. The marketing department may set the price for the product, the sales department has the same responsibility, and so on.
This is all very well and good, but isn’t the problem that companies are so far removed from their suppliers that they’re never really sure what they are. For example, how do companies know what is the cost of a specific part? Or how do they know what the real product cost is? There are just too many variables for them to have a really good handle on.
It is just like a supplier can never be sure if it is the right size and weight to buy it, or if it is the right size and weight to pay for it, or there is a really weak spot.
It is true that companies (and people) are so far removed from their suppliers that they dont have a good handle on what is the best price, the cheapest way to pay for the product, or the most efficient way to get it to the customer. However, that doesnt mean that they cant be aware of what is the best way to pay for the product or the cheapest way to get it to the customer if they dont know.
With the advent of the internet, it is possible to compare prices between companies and get a sense of what those prices could be. It’s also possible to compare pricing between suppliers, and get a sense of the quality/price/efficiency of different suppliers. However, most companies are not so great at comparing prices when they are out of stock.
The difference between the two is that the internet allows customers and suppliers to compare prices and see which ones are low or high, and which ones are cheaper or pricier. It also allows companies to see which ones are more efficient or have lower inventory requirements. This is because the internet allows companies to do price comparisons without having to go to the actual retail location.
This is the point where I’ve found it pretty interesting because I think that the most important thing is that you can see what’s in store, but you don’t know what you’re looking at so you can’t really judge.