Logistics and Supply Chain Management

1168 Words Sep 27th, 2011 5 Pages
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
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Logistics concentrates on coordination among business functions within and through companies, such as production, finance and marketing. In addition, according to Meredith & Shafer(2010), the SCM involves in managing the whole chain from receiving the end-customers' order to providing raw materials. SCM is not only limited to managing the links that connect with one's own firm, but all links within the chain. They also argue that SCM can also be regarded as a process with other managerial functions, such as quality and inventory management, lean production and enterprise resource planning, but it is involved in even more extensive scope than that. In addition, Mentzer, J., Stank, T., & Esper, T.(2008) also states that SCM make corporations can actively plan and collaborate through the distributed supply chain and assure that all parities know objectives, timetable and expedites which can lead companies and their suppliers produce and deliver goods with minimal lead-time and costs. Furthermore, they also maintain that Logistics plays an important part in supply chain processes and also involves in sourcing and producing. Therefore, it is concluded that they are not completely the same terms concerned with the scope.

Secondly, logistics and SCM are not exactly the same in operations because of the specific activities and effects are different. First of all, according to Russell SH.(2007), the integrated logistics caused by recognized the
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