What does Supply Chain Management (SCM) encompass?

Supply Chain Management (SCM) is a comprehensive approach that involves the end-to-end process of managing the flow of goods, information, and finances from the initial supplier through to the customer. This includes various crucial activities such as designing the supply chain architecture, planning for the demand and logistics, executing the transportation and storage of products, and actively monitoring these flows to ensure efficiency and efficacy.

The scope of SCM extends beyond just the production processes, as it integrates various functions including procurement, production planning, inventory management, transportation, warehousing, order fulfillment, and even customer service. By emphasizing the flow of information and financial interactions alongside the physical movement of products, SCM aims to optimize the entire supply chain, enhancing responsiveness and reducing costs while maintaining service levels.

This holistic perspective is what distinguishes SCM from narrower concepts like only focusing on production or purely financial management, making option B the most accurate representation of what SCM entails.