What is role of logistics in supply chain management? LM Blog-09

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.

Logistics delivers material of the right quality to consumers at reasonable cost and at the right place and at the right time to Material Delivered. Logistics also focuses on finding a way that can lead to product delivery in a short time.

Logistics management is very important if your business is to be successful.

It also has careful control of the goods leaving and entering your business premises, thus keeping your company running smoothly as a whole. These are our top reasons to help in the right logistics management

Logistics and Supply Chain Management are terms that are often used as interchanges, but they are actually two aspects of the process

Logistics refers to functions within a company, for example, the purchase and delivery of raw materials, packaging, shipment, and transportation of goods, etc. to distributors.

Whereas supply chain management is a large network of external organizations that work together with vendors, transportation providers, call centers, warehouse providers, and others to deliver products to customers.

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.

Logistics management is a part of supply chain management. supply chain management is a new version of logistics management.

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

2. Outbound logistics: Activities that perform collection, maintenance and delivery for the last consumer.

Apart from this, there are other activities such as Warehousing, Protective packing, Order fulfillment, Stock control, demand and supply, Stock management to maintain a balance between all these and savings in its cost and time, high quality products etc. also taken care.

Definition of Supply Chain Management.

Supply chain management (SCM) is a series of modification and interconnection activities ranging from raw materials to finished goods, until the goods reach the end user.

This is a result of the efforts of many organizations that helped make this chain of activities a success.

These organizations may include a number of companies with which they work as Suppliers, manufacturers, Wholesalers, Retailers and Consumers.

The activities include integration, sourcing, purchase, production, testing, logistics, customer service, performance measurement etc. in supply chain management.

Conclusion

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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