Objectives & Components of SCM

Objectives of SCM

The following are the main objectives of supply chain management.

• To reduce inventory cost
• To increase sales
• To improve the coordination and the collaboration with suppliers, manufacturers and distributors.

Components of SCM System

The components of a supply chain system consist of the following.

1. SCM Software and Hardware
2. Business Processes - Business processes of supply chain include supply chain planning, execution and collaboration and
operational control.
3. Users - The users of SCM system are workers of supply of participants at all levels.


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