© SCM

A supply chain is a network of facilities that procures materials, transforms these materials to finished products and finally distributes the finished products to customers.
Supply chain management commonly known as SCM is a process used by companies to ensure that their supply chain is efficient and cost-effective. Supply chain management is comprised of five stages:
1. Plan: A plan or strategy must be developed to address how a good or service can satisfy the needs of customers.
2. Develop: This phase involves building a strong relation with the raw material suppliers and also planning methods for shipping, delivery and payment.
3. Make: At this stage the product is tested, manufactured and scheduled for delivery.
4. Deliver: Customer orders are taken and delivery of the goods is planned.
5. Return: At this stage customers may return defective products and the company also addresses customers' questions.
Supply chain software is used by many companies for efficient supply chain management.