ITPEC FE Morning October 2023 Question 69
Which of the following is the purpose of SCM?
Explanation
Reducing costs and shortening delivery periods by managing information across companies from procurement to sales — SCM optimises the whole supply chain, not one company.
SCM (Supply Chain Management) shares information on orders, inventory, production and logistics among suppliers, manufacturers, distributors and retailers, so that the chain as a whole carries less stock, costs less and delivers faster.
Answer (d)
Why not others:
- •(a) — unified management of customer information, purchase history and complaints to build good relationships is CRM
- •(b) — integrated management of core operations inside one company (production, sales, inventory, accounting) is ERP
- •(c) — managing customer information, meeting schedules and sales progress to make sales activity efficient is SFA
Key rule: Across multiple companies from procurement to sales means SCM; within one company it is ERP, with customers CRM, and for the sales force SFA.
Business Strategy Management · AI-written, may contain errors
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