What Is Supply Chain Management?

What Is Supply Chain Management?

Supply chain management is the collaboration of manufacturers, wholesalers and retailers to deliver the best value to consumers in a particular trade channel or market. By collaborating on logistics, planning and transportation trade members reduce the cost structure of distribution, which improves profits and minimizes consumer prices.

One of the ways suppliers and buyers in a supply chain collaborate is to automate inventory replenishment. Retailers integrate electronic inventory data with suppliers so that replenishment is automatic once certain products reach a minimum inventory threshold. Reducing manual steps reduces costs. Greater profit, better value for end customers and environmental protection are core benefits.