Supply Chain And Logistics Management

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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
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In supply chain management storage has main importance to deal with current and future demand. Storage make it sure that organization has a specific level of inventory. Storage mainly involves warehouse activates, like load in, load out and current stock status. Maintaining storage to a specific capacity is essential to keep business in run. Any shortfall can be resulted in delay of business operations.
This part of supply chain management involves selling the right product to the right customer for right price. Right customer can be find with the help of market surveys and analysis. Price can be set by developing pricing strategies with respect to competition in market. Selling of product also involve setting targets of sales.
Logistics is distinct from supply chain because its only involve movement of goods from one place to another. It involves two types of logistics or transportation.
a. Inbound logistics
Inbound logistics consists activities of receiving the raw material and its storage and distribution.
b. Outbound logistics
Outbound logistics involves outward movement of final product of the business. This outward movement can involve transportation of goods toward whole sellers, retailers or directly to final consumers.

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