Supply Chain Management (SCM), or Supply Chain Management, is the set of activities and processes for managing flows, goods, services, financial and operational data between agents in the production chain and end consumers to obtain competitive advantages and add value.

The supply chain is made up of all organizations and people involved in the production and distribution of a product or service, from raw material suppliers to end consumers.

Supply chain activities include:

• Purchasing: acquisition of raw materials and inputs from suppliers.
• Production: transformation of raw materials into finished products or services.
• Logistics: transport, storage and distribution of finished products or services.
• Sales and marketing: promoting and marketing products or services.

SCM is important for businesses because it can help:

• Reduce costs: By optimizing supply chain processes, companies can reduce operational costs such as inventory, transportation and order processing.
• Improve efficiency: SCM can help companies improve supply chain efficiency, making it faster and more reliable.
• Increase customer satisfaction: SCM can help businesses increase customer satisfaction by providing products or services at the right time, in the right place, and at the right price.

SCM is a complex and constantly evolving area. Companies that want to gain competitive advantages through an effective supply chain need to invest in technology, training and innovative processes.