SCM stands for Supply Chain Management. This is a system that is used to manage and oversee products from their point of origin all the way until it is consumed. The information available from these systems can be quite extensive and is used for many different things. Supply chain management can be done using software systems, paper documentation, or just about any other method.
Steps in the SCM
Supply chain management should track the flow of everything that is used in the production and use of products. This will include things such as:
- Flow of Materials – Understanding how the materials used for a particular product are acquired and where they are throughout the process is important. This can be used for things like just in time ordering and much more.
- Finances – Understanding the finances related to a given product is essential.
- Design information – The design information of a product is needed. Even if it doesn’t have to be referenced each time, it is important to have included as part of the SCM.
- Production Steps – What is required for each step along the production process? This will include machinery, parts, and more.
- Monitoring & Control Details – Steps taken to monitor for defects and what can be done to prevent them.
- Sales Information – This last step is the point at which it is sold to the customer. This is the customer from the point of view of the manufacturing company, which will typically mean a retailer of some type.
Being able to track the creation of a product throughout the entire supply chain is critical for continuous improvement, waste elimination, and more. The data gathered together as part of the supply chain management process should be constantly updated as things change and improve. In fact, adding the updating of the SCM as part of any improvement that is conducted is essential.
