SCMT Key Terms

Supply chain management

The process of smoothing transitions along the supply chain so that the firm can satisfy its customers with quality products and services; focuses on developing tight bonds with suppliers.

Procurement

The action of obtaining equipment or supplies for a business

Logistics

The coordination of a complex operation involving a large amount of people, facilities, or supplies

Production

The creation of products and services by turning inputs, such as natural resources, raw materials, human resources, and capital, into outputs, which are products and services

Operations

The design, execution, and control of operations that convert resources into desired goods and services and implement a company's business strategy.

Inventory management

The determination of how much of each type of inventory a firm will keep on hand and the ordering, receiving, storing, and tracking of inventory

Supply chain

The entire sequence of securing inputs, producing goods, and delivering goods to customers.

Inputs

natural resources, raw materials, human resources, and capital

Outputs

products and services

Supply chain sustainability

the management of environmental, social, and economic impacts, and the encouragement of good governance practices, throughout the lifecycles of goods and services.