SCM (supply chain management) - a management concept and organizational strategy, which consists of an integrated approach to managing the entire flow of information about raw materials, materials, products, services that arise and transform during the implementation of logistics and production processes at the enterprise; the goal of this strategy is to obtain a measurable total economic effect (reducing costs, meeting the demand for final products).

A supply chain is a number of independent companies that are involved in sourcing materials, manufacturing products and physically distributing them to end customers.

Supply chain management - the systematic, strategic coordination of traditional business functions within a particular company and in the supply chain to improve the long-term performance of each individual company and the supply chain as a whole.

The supply chain management system (SCM-system) is an application software designed to automate and manage all stages of the supply of an enterprise and to control the entire movement of goods: purchase of raw materials and materials, production, distribution of products.

SCM systems can be executed in different versions:

• as independent replicated SCM systems;
• as solutions implemented as components of ERP systems;
• as unique systems created for specific enterprises.

An SCM system usually includes two subsystems:

• SCP (supply chain planning, supply chain planning) - planning, scheduling, supply chain design, simulation of various situations, analysis of operations;
• SCE (supply chain execution) - tracking logistics operations and monitoring their implementation.

The choice of the optimal batch size is one of the most important conditions for increasing the efficiency of the enterprise, since an insufficient batch volume leads to an increase in administrative costs for repeat orders, and an excess one leads to a freeze of funds.

SCM solutions allow you to develop optimal plans for the use of existing technological lines, detailing what, when and in what sequence should be produced, taking into account the limitations of production capacities, raw materials and materials, batch sizes and the need to change equipment for the release of a new product. This helps to achieve high demand satisfaction at the lowest cost.

The main tasks solved using SCM systems:

• Improving the level of service.
• Optimization of the production cycle.
• Decrease in warehouse stock.
• Increasing the productivity of the enterprise.
• Increased profitability.
• Control of the production process.