What is SCM (Supply Chain Management)?
The management of the flow of goods, information, and finances across the entire supply chain from suppliers to customers.
Definition
Supply Chain Management (SCM) encompasses the planning, execution, and monitoring of all activities involved in sourcing, procurement, manufacturing, and delivering products to customers. SCM in the context of ERP covers demand planning, procurement, inventory management, warehouse operations, transportation management, and supplier collaboration. Effective SCM reduces costs, improves delivery performance, and increases supply chain resilience.
How SCM Works in ERP
ERP systems include SCM modules that integrate procurement (supplier management, purchase orders), inventory management (stock levels, reorder points), warehouse management (receiving, putaway, picking), and sometimes transportation management. Modern ERPs add supply chain planning (demand forecasting, S&OP) and supplier collaboration portals.
ERP Vendors with Strong SCM
SAP S/4HANA Public Cloud
Standardised cloud ERP with quarterly auto-upgrades and low TCO
Oracle NetSuite
The original cloud ERP — built for fast-growing companies
Microsoft Dynamics 365
Modular ERP + CRM tightly integrated with Microsoft 365
Oracle ERP Cloud
Enterprise cloud ERP with deep financials and analytics
Frequently Asked Questions
How does ERP help with supply chain management?
ERP provides end-to-end visibility across the supply chain — from demand forecasting through procurement, manufacturing, warehousing, and fulfillment. It automates purchase orders, tracks inventory in real-time, and provides analytics for supply chain optimization.