Logistics and Supply Chain Management
Topic: Do the terms, ‘logistics management’ and ‘supply chain management’ have the same meaning in operations and why logistics management might be of strategic importance to a manufacturing or service organisation.
During last two decades, the importance of logistics has been noticed around the world. In global markets, the effects and further developments of logistics and supply chain management for corporate success has increased significantly that result in a large amount of companies have taken actual benefits in logistics, such as reducing costs, enhancing customers ' satisfaction and increasing sales. However, some people are confused with the relationship between logistics and supply chain management, what logistics or logistics management is and what supply chain management is, weather or not that they are the same meaning in operations. Therefore, this essay will argue that logistics management and supply chain management are not exactly the same in operations because of the scope where utilized and some specific activities are similar, but some are different. In the end, this essay will also talk about the reasons for logistics management is a important strategy to manufacturing or service companies.
The first argument is that they are not completely the same terms in operations because of the scope where utilized are different. Firstly, according to Murphy & Wood (2008), CSCMP states that the supply chain management
Logistics and supply chain management is an important aspect of a firm’s strategy for the business to achieve success by creating value throughout the logistics and supply chain. The research paper will outline the concepts that are involved in creating the logistics and supply management framework. The logistics and supply chain management strategies will drive success for the company towards fulfilling and supporting customer needs, procurement and manufacturing operations of the firm.
Logistics is one of the main functions within a company, and the supply chain is a complex and sometime fragile global endeavor dependent on a network of independent, yet interconnected, moving parts. It requires professional management. Supply chain professionals order the product, build it, move it, ship it, distribute it, and drive the coordination processes with marketing, sales, engineering, manufacturing, finance, and information technology. In short, they make any business effort seem effortless.
Review of related literature gives a basis for any research. Unfortunately, there are not much studies conducted in this field of Logistics Management. Following are the available related studies undergone in the area of Logistics Management.
Logistics is a very important part in the world now. And it plays a major part in the supply chain process. Without logistics the supply chain is a hard to continue. In a logistics system there are some parts such as Transportation, Information systems, Customer service, Inventory management, Materials management and Warehouse management. And in this Warehouse management plays a major role in the supply chain. In the supply chain process there are some parts that needs attention. After the raw materials are provided to manufactures the goods are sent to warehouses. Warehouse is the place where they store the goods which is to be sent to customers or other businesses. A Warehouse is a place where you store goods. It’s for further processing. There are some types of warehouses such as Public warehouses, Private warehouses, Leased warehouses and Contract
(Bowersox, D.J., Closs, D.J., and Cooper, M.B. (2010). Supply Chain Logistics Management. (3rd Edition) New York, NY: McGraw-Hill/Irwin.
This article tells about the evolution of SCM concept and also considers the present state of supply chain management, whether it is a process, a discipline, a philosophy, a governance structure or a functional area. Here in literature review, supply chain is defined as a set of three or more entities (organizations or individuals) directly involved in the upstream and downstream flows of products, services, finances, or information from a to a customer, which was given by Mentzer et al in 2001 which is still true today. But there always remain a confusion in defining supply chain management. Many researchers and practitioners created their own definitions and names to describe supply chain management. All these concepts were published in many journals in those days like International Journal of Physical
Difference between Logistics and Supply Chain Management: Logistics involves activities that occur within the scope of an individual organization, which focuses on interest in activities such as purchasing, distribution, warranty, etc. Supply chain management involves systematically involving companies and incorporating activities to deliver products to the market. It is also part of the supply chain. Include all logistics issues but add other activities like marketing, new product development, finance and customer service. Is a cross-cutting activity throughout the entire manufacturing
Supply chain management is the business of overseeing the flow of materials to manufacturers, wholesalers, retailers and consumers. It is an external process that involves supply chain managers communicating with other vendors to ensure a product flows through the supply chain smoothly. Once a product reaches the consumer, it has already flowed through multiple organizations – these organizations collectively are referred to as the supply chain. Effective supply chain management should result in a relatively seamless production process while also minimizing costs on a continuing basis. Operations management, by definition, is the development, execution and
SCM can be divided into three main groups: purchase, manufacture, and transport (Thomas et al., 1996). The focus is on transportation. There are different modes of transportation. These modes of transportation fall under three basic types and they are: land (road, rail and pipelines), water (shipping) and air. Transportation plays a connective role among the several steps that result in the conversion of resources into useful goods for the ultimate consumer. It is the planning of all these functions and sub-functions into a system of goods movement in order to minimize cost and maximize service to the customers that constitutes the concept of business logistics. The system, once it’s put in place, must be effectively managed (Fair & Williams, 1981). What are the advantages and disadvantages of these modes of transportation in logistics?
Minor Logistics Operations Presentatie titel MIRBSLM114OP N.J. Osentoski-Monsma & A. Nielsen-de Vries Lecturers Logistics Room D2.173 osenj@hr.nl / vriad@hr.nl Rotterdam, 00 januari 2007 6-1 Corporate strategy Business strategy Operations Strategy Mission Objectives (cost, quality, flexibility, delivery) Functional strategies in marketing, finance, engineering, human resources, and information systems Strategic Decisions (process, quality system, capacity, and inventory)
Logistics management is defined according to The Council of Supply Chain Management Professionals (August, 2013) as “Logistics management is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of
Logistics and supply chain management is the process of making sure materials are collected, tuned into products and then distributed so that they can reach the user. Logistics is the full process of the gap between the materials being raw and collected to the delivery of the finished product in the users hands. “As such logistics includes;
The Recent acrimonious debate has focused on the argument of whether logistics and marketing is friend. Marketing is defined as the management processes of individuals and groups create the demand and meet the demand. (Kotler et al. 2013). Converse (1954) made a speech at twenty-sixth Boston Conference on distribution. He claims that the process of selling goods and the process of satisfying consumer’s needs is closely related to logistics. Christopher (2011) states that the performance of marketing is to depend on logistics supply chain. There is no doubt that the logistics is a close link to marketing, in other wards, the logistics is the best friend for marketing. Madhani and Pankaj (2012) claim that the main task of supply chain is to optimize the process of production and distribution in order to control the cost. In contrast, marketing is meet customers’ need in order to maximize profits. As a result, supply chain and marketing work independent, both of them are enemies. However, logistic has a direct and positive decisive influence on the marking in terms of product value, marketing mix and customer service.
Since logistics progressed from 1950s, there were various scrutinizes centered on this zone in distinctive applications. Because of the pattern of nationalization and globalization in late decades, the criticalness of logistics administration has been becoming in different regions. For commercial enterprises, logistics serves to advance the current generation and dissemination courses of action focused around the same assets through administration strategies for advancing the effectiveness and aggressiveness of undertakings. The key component in a logistics chain is transportation framework, which joints the divided exercises.
In order to deal with the ever growing changes in competition in the market, the company must take into consideration the speed, efficiency, and other conditions in the operation of strategies, and in crossing these socio economic barriers management plays a really important role, in the deployment of strategic plan s and objectives to deal with each issue that rises from every and each one of these barriers, therefore the industry needs to pay attention to the vertical integrative relationship among upstream suppliers, midstream retailers, as well as downstream retail customers, the transformational process of the global industry, and the need of the logistics management system is gradually