What is role of Logistics in Supply Chain Management?
“Logistics in simple words-Logistics performs activities within the company or organization associated with Product Delivery. Logistics lead the movements and stores and delivers goods from starting production to final delivery, so as to meet consumer expectations. Logistics makes all procedures easier to make sure that end users can actually get the product they order.
What is difference between Logistics and (SCM) Supply chain Management?
Logistics Management is a major part of supply chain management, while supply chain management is an overall and contextual approach. Know about it this way.
Logistics asks, “Customer wants product. How can we deliver them? and On the other hand
supply chain management asks, “How can we provide more value to our customers and improve competition and improve supply chain processes?”
Logistics are important to your overall supply chain management efforts. After all, if your company is not able to verbally move your product from Point A to Point B, it will not happen that your business will not be successful.
But, supply chain management involves a lot more than Deliver your product.
This includes improving the inter specific and tactile aspects of Manufacturing, Storage, Delivery and Supply, which maximizes the productivity of your organization and helps to truly grow your business.
Logistics Management is a small part of Supply Chain Management that deals with managing goods in an efficient way. However, if we talk about Supply Chain Management, it is a broad term that implies connection, from suppliers to the end consumer. People are quite surprised between these two concepts.
Let us begin to understand the difference between Supply Chain Management.
Logistics Management> Processes for integrating the movement and maintenance of goods inside and outside the organization.
Supply chain management> Coordination and management of supply chain activities is known as Supply chain management.
Logistics Management> works on customer satisfaction.
Supply chain management> works for competitive advantage.
Definition of Logistics Management.
Logistics management integrates the process and movement of goods, services, information and capital, and is known as Logistics Management until it reaches its final consumer.
The objective behind this process is to provide the right product with the right quality at the right time at the right place in the right price to the customer. Logistics Activities are divided into two categories:
1. Inbound Logistics: Activities that purchase, handle, store and transport materials
Definition of Supply Chain Management.
I hope you understand what is logistics? What is the role of logistics? What is the role of supply chain? What is the difference between these two? How do they work together? In the next blog, we will learn about inbound logistics and outbound logistics in details. Thank You!
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