Supply Chain And Logistics Management

1295 Words Oct 25th, 2015 6 Pages
What is supply chain and logistics?
Supply chain management involves various activities from acquisition of raw material to distribution of final goods while logistics involves only transportation of goods. Supply chain plays integral role in business process without effective supply chain management an organization cannot meet its demands on time. So it plays crucial role in business activities.
Following activities are involved in supply chain management
1. Procurement
2. Production
3. Distribution
4. Storage
5. Selling
Procurement activities occurred in all supply chain activities. It has so much importance because effective decision making in procurement leads to reduces cost and finally resulted in maximization in profits. Further procurement involves following activities
• Tendering
• Selection of supplier
• Transportation
• Insurance
• Inspection
Manufacturing activities involved producing final products for consumers. These products can be primary goods and secondary goods. Manufacturing or production must employ its capacity and efficiency requirements so that production can satisfy the demand on timely basis.
Distribution activities involved delivering to final goods to final consumers or retailers or whole sellers. It can be delivered directly to the consumers or through different medium like
Retailers and whole sellers. Distribution required proper planning and implementation because distribution occurs…
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