ITPEC IP April 2025 Question 84

Sales information is sent to the manufacturer so it can produce and supply in time — sharing information across companies along the supply chain is SCM.

SCM (supply chain management) manages the whole flow of goods from materials procurement through manufacturing and distribution to sales as one chain, across company boundaries. When the store's actual sales reach the manufacturer over a network, production and delivery follow real demand, which cuts excess inventory and stock-outs and shortens lead times for the chain as a whole.

Answer (c)

Why not others:

• •(a) — selling over the Internet as well is e-commerce, an added sales channel; nothing links the flow of goods between companies
• •(b) — sharing sales representatives' information and know-how through a database is SFA (sales force automation) or knowledge management inside the sales department
• •(d) — gathering store sales data at headquarters and analyzing trends by age and gender is analysis of POS data, used for marketing inside one company

Key rule: The mark of SCM is information shared between the companies in the chain (retailer, manufacturer, suppliers) so supply matches demand; improvements that stay inside one company or one department are something else.

Business Strategy Management · AI-written, may contain errors