SCM system

SCM system
See also
Value chain model Logistics chain Inventory costs Types of logistics costs Material stream Resources and capabilities Landed cost Production logistics subsystem Procurement logistics

SCM systems (Supply Chain Management systems) are IT systems supporting supply chain management operations, and coordinating flows of goods.

This system allows easy analysis of the material flows between suppliers, and gives the company easy possibility to adapt to market demand.

Typically includes support for the transport planning at different levels between the different companies involved.

There are two types of IT SCM systems:

• internal engaged in supplying, distribution and production,
• and external, integrating the company with its suppliers.

With this system, the partner companies, can find a niche in the market and to use information across whole logistics network.

In manufacturing companies SCM incorporates the majority of the production process planning and supply activities.

The advantages of this system can include: integrating with other companies IT systems via the Internet, the optimum adaptation of production to market needs, search for market niches, optimization of supply sources and identifying constraints in the supply chain.

See also:

• IT systems in production management
• IT systems in value chain management
• Strategic IT System
• Sources of information in logistics

References

• Fawcett, S. E., Ellram, L. M., & Ogden, J. A. (2014). Supply chain management: from vision to implementation. London: Pearson.