Plan: strategic component of SCM. Strategy for managing all the resources that go toward meeting customer demand for their product or service. Ensuring organization is efficient in delivering high quality and value to the customer for the lowest cost.
-Source: deals with managing business and relations with suppliers. SC managers develop pricing, delivery, payment process, verifying shipments, etc. with chosen suppliers.
-Make: manufacturing component. Supply chain managers schedule the activities necessary for production, testing, packaging, and preparation for delivery. Most metric intensive part of the supply chain, where organizations measure quality levels, production output, and worker productivity
-Deliver: referred to as "logistics", is where organizations coordinate the receipt of customer orders, develop a network of warehouses, select carriers to transport products to customers, and to set up an invoicing system to receive payments.
-Return: Supply chain managers must create a responsive and flexible network for receiving defective, returned, or excess products back from their customers, as well as supporting customers who have problems with delivered products.