Define the term supply chain and explain what SCM systems attempt to do. What does supply chain simplification entail?

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 Supply chain

The supply chain refers to the series of transactions that link sets of firms that do business with each other. It includes not only the firms themselves but also the relationships between them and the processes that connect them. 

2nd part

SCM (supply chain management) systems attempt to coordinate and link the activities of suppliers, shippers, and order entry systems to automate the order entry process from start to finish. This includes the purchase, production, and moving of a product from a supplier to a purchasing firm. 


Supply chain simplification entail

Supply chain simplification refers to the reduction of the size of a firm’s supply chain. Firms today generally prefer to work closely with a strategic group of suppliers in order to reduce both product costs and administrative costs. Long-term contract purchases containing pre-specified product quality requirements and pre-specified timing goals have been proven to improve end-product quality and ensure uninterrupted production.



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