A Brief Note On Supply Chain And Logistics

1139 WordsFeb 21, 20165 Pages
1.3. Similarities and differences We have seen from above examples that supply chain and logistics is a concept that was not invented by manufacturing industry but was successfully borrowed from the military and implemented to increase its own efficiency. The focus of use of logistics and supply chain in both military and manufacturing is to make sure that people or resources or products reach their destination in time and in correct condition. However, there is also one difference in application of logistics and supply chain in these two domains. The manufacturing industry is driven by demand. Hence the inventory levels depend on the forecast of the demand. It is not advisable to have a lot of extra inventory as that might lead to wastage and financial losses. Hence, many companies use methods such as ‘Just In Time’. This approach does not work in the military. It is of utmost importance to have a huge inventory of weapons as well as rations to account for any disruption of supply chain in event of wars. 2. Data mining Data mining consists of analysing huge sets of data and extracting relevant information and data patterns. Companies often have very large data sets that needs to be analysed for many different purposes. Initially this was a hard task to accomplish because of limitations in computing power. However, computer technology has accelerated so fast in recent past that analysing large volumes of data has become possible. Companies use these analysis results for
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