Supply 
chain management 
(SCM) 
deals with 
the planning 
and execution 
issues involved 
in managing 
a
supply chain.
The components 
of SCM are:
- 
Demand 
planning: 
(forecasting)
- 
Demand 
collaboration: 
(collaborative 
resolution 
process 
to determine 
consensus 
forecasts)
- 
Order 
promising: 
(When 
can 
one 
promise 
a product 
to a 
customer 
taking 
account 
lead 
times 
and 
constraints)
- 
Strategic 
network 
optimization: 
(what 
plants 
and 
DC's 
should 
serve 
what 
markets 
for 
what 
products) 
(monthly 
- yearly)
- 
Production 
and 
distribution 
planning: 
(Coordinate 
the 
actual 
production 
and 
distribution 
plans 
for 
a whole 
enterprise) 
(daily)
- 
Production 
scheduling: 
(For 
a single 
location 
create 
a feasible 
production 
schedule) 
(minute 
by minute)
- 
Transportation 
planning: 
(For 
multiple 
supply, 
manufacturer, 
distributor 
and 
warehousing 
points 
in a 
network)
- 
Transportation 
execution: 
(Enactment 
of long 
term 
plans 
on a 
per 
shipment 
basis, 
typically 
performed 
by focused 
organizations 
called 
forwarders)
- 
Tracking 
and 
Measuring: 
(An 
ever 
increasing 
aspect 
of supply 
chain 
management 
designed 
to highlight 
potential 
against 
the 
plan 
and 
possible 
process 
improvements)
- 
Plan 
of reduction 
of costs 
and 
management 
of the 
performance 
(diagnosis 
of the 
potential 
and 
the 
indicators, 
the 
organization 
and 
planifiaction 
strategic, 
masters 
dysfunctions 
in real 
time, 
evaluation 
and 
accounting 
reporting, 
evaluation 
and 
reporting 
quality)