What does SCM primarily aim to optimize?

The primary aim of Supply Chain Management (SCM) is to optimize the overall efficiency and effectiveness of the supply chain, which includes a strong focus on cost efficiency. Achieving cost efficiency means minimizing costs while maximizing the value delivered throughout the supply chain process, including procurement, inventory management, and distribution. Cost efficiency allows for better resource allocation, improved profitability, and the ability to offer competitive pricing.

While other factors such as patient outcomes, inventory accuracy, and supply delivery times are also important components of SCM, they ultimately contribute to the broader goal of cost efficiency. For example, improving inventory accuracy can reduce waste and excess spending on unnecessary stock, and optimizing delivery times can lower operational costs. However, the overarching focus remains on cost efficiency as it directly impacts the organization's financial health and ability to deliver services effectively.