Supply chain management (SCM) is a centralized management of the flow of goods and services and includes all processes that turn raw materials into final products.
By managing the supply chain, companies can reduce unnecessary costs and deliver products to the consumer faster and more efficiently.
Good supply chain management keeps companies out of headlines, costly recalls and lawsuits.
The five most important elements of SCM are strategy development, raw material sourcing, production, distribution and returns.
The supply chain manager is tasked with controlling and reducing costs and avoiding supply shortages.
Delivery Duty Paid (DDP) is a delivery contract under which the seller assumes full responsibility for transporting the goods until they reach the agreed destination.
Distribution Management manages the supply chain for the firm, from vendors and suppliers to the manufacturer and point of sale, including packaging, inventory, warehousing and logistics.
In a supply chain, a distribution network is an interconnected group of storage facilities and transportation systems that receive stocks of goods and then deliver them to customers.
Free carrier is a trade term that requires the seller of goods to deliver those goods to a specified airport, shipping terminal, warehouse, or other carrier location specified by the buyer.