What is SCM?
Supply Chain Management
Managing the entire flow of materials from supplier to factory to customer.
What it means
A supply chain is a series of suppliers, factories, warehouses, and customers. If one place in front is late, everyone behind it will be late. SCM is about looking at the entire line and making sure it doesn't break.
This includes things like not having just one supplier, knowing how long each supplier takes, and deciding how much inventory to keep.
At the pen factory
On the 9th day, Daehan Refills' machine broke down and refill was two days late. In a situation where the assembly line will be set up the next day, we do not set up a factory by ordering from Hanguk Writing, which is a little expensive but ships the product the next morning.
Why it matters
No matter how well you run your factory, you can't make anything if you don't get the materials. You can meet deadlines only by looking at what is happening outside.