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Importance Of Supply Chain Management ( Scm ) Essay

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The purpose of this memo is to inform all staff of the importance and resources of Supply Chain Management (SCM). An effective SCM design assists in the enhancement, profitability, and stakeholder value for the company. Potentially, increasing opportunity for employee advancements within the organization.
Through research and analysis, the SCM consists of five drivers:
• Production
Inventory
• Location
• Transportation
• Information (Maududi, May)
The drivers are SCM fundamentals critical to an operative process. An organization must utilize all fundamental to enhance operations in various ways. Productivity is easier to accomplish with teamwork. Teamwork is comparable to a chain. Links joining other links together, making one strong element. Just as a Supply Chain must be a unit, so must be the segments of the Supply Chain. Cohesive employees implementing the fundamentals are critical for SCM and its effectiveness. Collaboration with the organization’s employees will make a difference in the SCM process.
Production and Transportation
Raw material is the start of the supply chain (point A). Different materials from different locations come together to manufacture a product (point B). The link in between point A and point B is the mode of transportation (Palmen, 2016). The manufacturer/ distributor will ship through retailers, until it reaches the end-user. The whole process is a chain of events that occur when moving supplies from one end to another (Palmen,
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