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GlossarySystem

Supply Chain Management (SCM)

The management of the flow of goods, data, and finances from raw material sourcing through manufacturing to customer delivery. Includes planning, procurement, production, logistics, and returns.

Key Benchmarks

Perfect order rate: 95%+
Supply chain cost: 8-12% of revenue
Inventory turns: 6-12x/year

Related Terms

Enterprise Resource Planning (ERP)

Integrated software that manages core business processes — finance, HR, manufacturing, supply chain, procurement, and more. Major vendors include SAP S/4HANA, Oracle ERP Cloud, and Microsoft Dynamics 365.

On-Time In-Full (OTIF)

Measures the percentage of orders delivered to customers on time and with the complete quantity ordered. A critical supply chain performance metric. World-class is 95%+.

Demand Planning & Forecasting

The process of predicting future customer demand using historical data, market intelligence, and statistical models. Accurate demand planning reduces stockouts, excess inventory, and supply chain costs.

See Supply Chain Management (SCM) in action

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