ITPEC FE Morning October 2019 Question 62

Optimizing the whole chain from purchasing to distribution, 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 company's or department's own benefit, it reduces inventory and shortens delivery lead times.

Answer (d)

Why not others:

• •(a) — consolidating customer information from many channels to build closer relationships is CRM (customer relationship management)
• •(b) — managing employees' skills and behavioural 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