ITPEC FE Morning October 2018 Question 70

Optimizing the whole chain from purchasing to distribution, within and across companies — that is SCM.

Supply chain management treats purchasing, production, sales and distribution as one flow that crosses company boundaries (suppliers, manufacturer, wholesalers, retailers). By sharing information and redesigning the flow for total optimization rather than each department's own benefit, it shortens delivery lead times and reduces inventory.

Answer (d)

Why not others:

• •(a) — consolidating customer information from many channels to build closer relationships is CRM (customer relationship management)
• •(b) — grasping employees' skills and behaviour characteristics for assignment and evaluation is human resource management (talent management)
• •(c) — sharing individuals' know-how and experience across the organization is knowledge management

Key rule: Name the management system by what it optimizes: SCM the supply flow across companies, CRM customer relationships, ERP internal resources, KM knowledge.

Business Strategy Management · AI-written, may contain errors