What does Supply Chain Management primarily coordinate?

Supply Chain Management (SCM) primarily coordinates all supply chain activities that enhance customer value. This comprehensive approach encompasses not just the logistics of transporting goods but also the entire process from sourcing raw materials to delivering finished products to customers. It involves collaboration among various stakeholders, including suppliers, manufacturers, distributors, and retailers, to ensure that each component of the supply chain aligns with the ultimate goal of satisfying customer needs.

This coordination is critical because it enables companies to efficiently manage resources, respond to market demands, reduce costs, and improve service delivery. By focusing on enhancing customer value, SCM seeks to optimize processes and create competitive advantages through better quality, faster delivery times, and cost-effective operations.

In contrast, the other options narrowly focus on specific aspects of supply chain operations rather than the holistic view necessary for effective SCM. For instance, shipping operations and inventory management are important components but do not encompass the entirety of supply chain coordination. Manufacturing activities alone represent only a segment of the supply chain and fail to account for the interconnectedness that characterizes effective supply chain management.