Abstract
To serve the customer, Supply Chain Management (SCM) needs to design, plan, execute, control, and monitor Supply Chain activities. Their objective is to create and increase the value of the Supply Chain, build the necessary infrastructure, leverage logistical needs, supply, and demand, and measure performance even at the global level. It’s more accurate to use the term “Supply network” or “Supply web”. Supply chain profitability is the total profit to be shared across all stages of the supply chain. Supply chain success should be measured by total supply chain profitability, not profits at an individual stage. Sources of supply chain cost are flows of information, products, or funds between stages of the supply chain. Supply chain management is the management of flows between and among supply chain stages to maximize total supply chain profitability.
Keywords: Supply Chain Management (SCM), supply chain profitability, Customers, etc.
Introduction
As Customers are at the end of the network and need certain products or services, Supply Chain Management is the management of networks and channels involved that serve the customer. SCM covers the movement and storage of raw materials, WIP, and finished goods from point of start to point using the finished goods or services. There are different parties involved in a Supply Chain such as manufacturers, marketers, suppliers, transporters, warehouses, retailers, customers, etc. They are directly or indirectly involved in the fulfillment of customer requirements. The main objective is to maximize the overall value generated. They continually look for sources of revenue and cost.
