What is Logistics and Supply Chain Management?

What is Logistics and Supply Chain Management?

“Logistics typically refers to activities that occur within the boundaries of a single organization and Supply Chain refers to networks of companies that work together and coordinate their actions to deliver a product to market. Also, traditional logistics focuses its attention on activities such as procurement, distribution, maintenance, and inventory management. Supply Chain Management (SCM) acknowledges all of traditional logistics and also includes activities such as marketing, new product development, finance, and customer service” – Michael Hugos

What is Logistics?

Logistics is about getting the right product, to the right customer, in the right quantity, in the right condition, at the right place, at the right time, and at the right cost (the 7 Rs)” – John J. Coyle et al
In the past, various tasks were under different departments, but now they are under the same department and report to the same head as below,

What is Logistics Management?

“Logistics Management deals with the efficient and effective management of day-to-day activity in producing the company’s finished goods and services” – Paul Schönsleben

What is the Difference Between Inbound Logistics and Outbound Logistics?

“Inbound Logistics refers to a movement of goods and raw materials from suppliers to your company. In contrast, Outbound Logistics refers to the movement of finished goods from your company to customers”
To illustrate this term, we make a small graphic as below,

As you can see, purchasing function and warehouse (distribution center) communicates with suppliers and sometimes called “supplier facing function”. Production planning and inventory control function is the center point of this chart. Customer service and transport function communicates with customers and sometimes called “customer-facing functions.

What are the Transport and Logistics?

“Transport and Logistics refers to 2 types of activities, namely, traditional services such as air/sea/land transportation, warehousing, customs clearance, and value-added services which including information technology and consulting”

What is International Logistics?

These are one of the most ambiguous groups of terms out there. They are used interchangeably with international supply chain or international production and transportation activities. However, the most concise definition is as below,
International Logistics focuses on how to manage and control overseas activities effectively as a single business unit. Therefore, companies should try to harness the value of an overseas product, services, marketing, R&D and turn them into a competitive advantage” Source:https://www.supplychainopz.com/


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