What is the supply chain management industry?

The supply chain management industry is an integral part of the modern economy. Without it, goods wouldn’t reach their destinations when and where they were needed. In essence, the supply chain is a series of organizations that are responsible for delivering a product or service to consumers. It can be hard to wrap your head around a supply chain’s complexity, which is why this article will explain what exactly the supply chain entails and how companies can use its extensive resources to their advantage.

How does supply chain management work?

To better understand how SCM functions, it is important to know that it utilizes a set of principles in order to manage inventory as well as improve levels through product flow. Businesses must adhere to these principles in order for the supply chain to function at maximum efficiency.

The five principles of SCM are as follows:

1) Visibility — visibility is a measure of how well managers know about the inventory and its progress. If a manager knows where all his products are and can quickly access that information, it will be easier for him to control inventory and make more informed decisions.

2) Flow — flow refers to how well products can move within the supply chain. This includes both physical movement and information flow…