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SCM involves: Stock control – movement and storage of the level of stock to the optimal level.

Supply chain management (SCM) – (logistics) this is talking about how a product is gotten to the customer in a fast and efficient way. Delivery companies have made this much easier and efficient for many businesses. (outsourcing) . SCM involves:

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SCM involves: Stock control – movement and storage of the level of stock to the optimal level.

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  1. Supply chain management (SCM)– (logistics) this is talking about how a product is gotten to the customer in a fast and efficient way. Delivery companies have made this much easier and efficient for many businesses. (outsourcing)

  2. SCM involves: • Stock control – movement and storage of the level of stock to the optimal level. • Quality control – make sure all levels of a supply chain care about quality • Supplier Networks – coordination and collaboration are necessary to ensure that the business and suppliers have a good relationship ensuring quality as well as logistics. • Distribution finally to the consumers in a timely and reliable manner especially if the goods are perishable.

  3. Reasons for supply chain management • Long supply chains give more chances for things to go wrong. (shorter the better) • Appropriate stock levels are kept too little and delays happen or shortage to meet demand. Too much and storage problems as well as working capital problems • Leaner production is easier if the supply chain is well in tact • All the members in a supply chain are dependent on each other if one fails such as a distributer then all the rest are affected in the chain (picture)

  4. Limitations to SCM Globalization has caused many firms from around the world to become interdependent. This can have problems because one small delay anywhere in the chain can hold up production and ultimately slow down sales. Communication is very important so that everyone in the chain knows what is happing on the link above and below it.

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