A supply chain management covers all activities that involve the planning and management of sourcing, procurement and logistics of one organization. It monitors the course of finances, resources and information in the company. To be more specific, supply chain management refers to supply and demand management inside and across the company. The purpose is to moderate and / or control the inventory and the assurance that the products and materials are available upon needed.

The three main flows of chain management:

1. Product flow – It involves the activities of merchandise from suppliers to the customers.
2. Information flow – It includes all activities regarding the order transmittal and monitoring delivery status.
3. The Financial flow – It involves all the payment activities such as payment schedules, terms of credit and consignment.

As technology became more progressive, many organizations are trying or depending into web based applications to grow into supply-chain management solution. As you look into the net, there are numbers of websites who offers services that can help you in your SCM solutions. SCM software has two types; the first one is the Planning application, which involves the usage of advanced algorithms and the second type is the Execution application, it monitors the quality and quantity of goods, materials management and the information regarding finances of parties involve.

In general, the supply chain management solves and oversees these problems: the distribution network configuration, the distribution strategy, logistical activities, the information, management of inventory and the finances such as the payment procedure.

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