What does Supply Chain Management aim to optimize?

Supply Chain Management (SCM) aims to optimize the entire supply chain from supplier to customer. This holistic approach is essential because it recognizes that various components of the supply chain are interconnected and impact one another. By focusing on the entire chain, SCM seeks to improve efficiency, reduce costs, enhance quality, and increase customer satisfaction.

Optimizing individual departmental performance might lead to localized improvements but could create silos that negatively affect the overall supply chain. Focusing solely on supplier relations ignores other critical aspects of the chain, such as logistics, inventory management, and customer service. Likewise, concentrating on product promotion and marketing does not address the operational efficiencies needed to deliver products to customers efficiently. Therefore, the comprehensive nature of SCM is what makes it essential for enhancing overall performance across all areas from suppliers through to the end customers.