Discuss this proposition. Do the terms, logistics management and supply chain management have the same meaning in operations Briefly explain how logistics management adds value to the operations of a manufacturing or service organisation. Introduction Logistics management and supply chain management are similar terms in business logistics, but these two terms are not the same (Murphy and Wood 2011, p22). In different decades, scholars made use of their knowledge and experience to define logistics management and supply chain management (SCM). In my opinion, currently logistics management is part of the supply chain management. This minor difference between the two can be supported by scholars in the industry. In this essay, we will discuss …show more content…
(Ballou 2007, p.338) The definitions of SCM and logistic management put emphasis on coordination, collaboration and relationship building among channel members that are missing from logistics management. Ballou (2007, p.340-341) also explained that logistics is now being viewed as a subset of SCM. The scope of logistics is being limited to the boundaries of the function within a firm and is primarily concerned with activity administration. Interfunctional and interorganizational management seem to be within the purview of SCM rather than logistics. Logistics as an identifying name supersedes physical distribution. At the most basic level, logistics management is concerned with the effective movement and storage of product, approximating the traditional economic utilities associated with creating value through time and place transformation (Chase, Jacobs, Aquilano 2006). In 2007, CSCMP offered the following definition 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 consumption in order to meet customer requirements. Logistics, therefore, involves managing facilities, transportation, inventory, materials, order fulfillment, communications, third party providers and information within the firm in a way that contributes to customer
Reorders are placed at the time of review (T), and the safety stock that must be reordered is:
In the San Diego distribution center (DC) information flow example, dealers not being notified automatically of order status would be classified as
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.
(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
Enterprise systems can be helpful to solve diverse business problems and optimize numerous processes in commercial organizations. Though the CIO is interested in different types of these systems being used, particular emphasis is placed on Supply Chain Management (SCM), which can be defined as “the management of information flows between and among activities in a supply chain to maximize total supply chain effectiveness and corporate profitability” (Baltzan, 2014). In order to profoundly evaluate the impact that these systems can have on different types of organizations, the paper will analyze two case studies, whose objective was to “promote further understanding of this process of adoption and integration of supply chain management
Supply chain management (SCM) is the supervision of materials, information, and finances as they move in a process from supplier to manufacturer to retailer to the cessation consumer. There are three crucial flows of the supply chain: The product flow, the information flow and the finances flow. SCM involves coordinating and integrating these flows both inside and between
Coyle, J. J., Bardi, E. J. & Langley, C. J. (2003).Management of business logistics: a supply chain p
How does a raw material’s status as pure, weight-losing, or weight-gaining influence the facility location decision? A pure
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
When thinking about the idea of Supply Chain Management (SCM) there are two core ideas that can be taken into account. Nearly every product that is obtained by a consumer is done so through the efforts of multiple companies working collaboratively. Secondly, many companies within these systems have historically been focused only on what role they play individually. SCM strives to bridge the gap between companies and organizations by providing effective management of supply chain activities in a way that maximizes profitability and consumer satisfaction.
I am applying for admission to the Master of Logistics and Supply Chain Management because I want a career in the Supply Chain Management. In particular, I am interested in factors that affect the competitive performance of a business concern, and the manner in which changes in technology affect an organization’s structure, long-term business strategy, product development, manufacturing, supply chains, distribution network, information needs and standard systems. In order to gain an appreciation of these and related issues, it is essential for me to have a strong grounding in Supply Chain Management, as well as gain a General Management perspective. I believe that the Master of Logistics and Supply Chain Management would be invaluable in helping me achieve these objectives. It would enable me to channel my quantitative and conceptual skills in analyzing business issues and would open up new avenues. Subsequent to earning a Master of Logistics and Supply Chain Management, I anticipate increasing my professional exposure, increasing my responsibilities, and eventually serving as a Manager / Sr.
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)
For some countries like Vietnam, the definition of supply chain management is still not that well-known enough to apply. Some administrators have just been familiar with the term “logistics” and applied them for all the goods flows. However, supply chain system includes product development, manufacturing, purchasing, inventory, goods distribution and logistics activities. In other words, logistics is just a component of the supply chain. Ganeshan and Harrison (1995) defined that a process from purchasing raw materials, converting them to finished goods and distributing them customers. It is used in both service and manufacturing organizations. For example, a customer goes to Citymart to buy G7 3-in-1 coffee. The supply chain will start from the demand of this customer. Since Citymart has stored a certain amount of this type of coffee to supply, which may be provided from another merchant or directly from