Supply Chain Management (SCM for short): It means that under the condition of meeting a certain level of customer service, in order to minimize the cost of the entire supply chain system, the suppliers, manufacturers, warehouses, distribution centers and channels, etc. are effectively organized together to carry out product manufacturing, transit, distribution and sales management methods. Supply Chain Management includes five basic elements: planning, purchasing, manufacturing, distribution, and returns.

Planning: This is the strategic part of SCM. You need to have a strategy to manage all of your resources to meet customer demand for your product. A good plan is to establish a series of ways to monitor the supply chain so that it can efficiently and cost-effectively deliver high-quality and high-value products or services to customers.

Sourcing: Select suppliers that can provide goods and services for your products and services, establish a pricing, distribution, and payment process with the suppliers and create methods to monitor and improve management, and integrate processes for managing the goods and services provided by the suppliers, including picking up the goods, verifying the manifests, transferring the goods to your manufacturing department, and approving payments to the suppliers.

Manufacturing: The activities required to schedule production, test, pack and prepare for delivery are the most measured part of the supply chain, including measurements of quality levels, product yields and worker productivity.

Distribution: Called "logistics" by many "insiders", this is the process of adjusting user order receipts, setting up a network of warehouses, sending delivery personnel to pick up and deliver goods to customers, setting up a system for pricing goods, and receiving payment.

Returns: This is the problematic part of the supply chain. A network is set up to receive defective and excess products returned by customers, and to provide support when customers have problems applying the products.

　　The modern business environment puts tremendous pressure on companies to not only sell products, but also to provide satisfactory service to customers and consumers, thereby increasing customer satisfaction and creating a sense of well-being. Kotler stated, "The customer is God, and without them the business cannot survive. All plans must revolve around retaining customers and satisfying them." Winning customers in domestic and international markets necessarily requires supply chain organizations to be fast, agile, flexible and collaborative in responding to customer needs. In the face of the changing supply chain environment, building a happy supply chain has become the development trend of modern enterprises.

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