Skip to main content

Differentiate between logistics and supply chain management

Contrary to supply chain management, logistics first came into play in the early 1950’s. It deals with managing the succession of goods between the point of the departure and the point of arrival. Logistics involves compacting the information and the actual business aspect of the transaction. This includes factors such as: transportation, material handling, packaging, and security measures. The essence of logistics is vital, because without it the routing, scheduling, preparation, distribution, plan, procedures, departure and arrival times of the physical materials being shipped from point A to point B might be distorted.
Essentially, supply chain management and logistics go hand in hand, small details mark the bold differences. The overall spectrum is controlled by the supply chain management team, being that they are not only responsible for achieving customer satisfaction ultimately but also contributing to maximization of profit. Logistics is like the small puzzle piece fitting precisely into the supply chain management picture, being that it takes into account the projection of each step prior to the time of arrival of the expected product. Logistics and Supply Chain Management do not intertwine, in definition. None the less, mutual contribution by both leads to more than just shipping.
Supply chain management is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers. Ultimately the goal of managing the supply chain is providing excellence to customers by moving the product to the final destination and making it a priority to meet all requirements set forth by customers. This makes it possible for the business details to be monitored from an overall depth. From financial aspects, to how accurate the information is given and to how intricate the organization is. All the movement involved begins from the moment a customer agrees to do business. Like the term suggests, it’s a chain!


Comments

Post a Comment

Popular posts from this blog

What is Sales Force training? explain it highlighting ACMEE principle

Sales Force training Training is a learning experience in that it seeks a relatively permanent change in an individual that will improve his or her ability to perform on the job. Training is combination of “KSA” n   Increasing the Existing Level of Knowledge , n   Enhancing the Existing Level of Skills , and n   Bring About Positive Change in the Attitude . Training is very much important for salesforce to enhance their skills and ability to serve the potential customer and exiting customers efficiently and effectively. A salesforce training programme, thus, aims at providing the required knowledge about the products and the effective ways presentation to the customers in the market. The Training-Programme may be for the-newly recruited salesmen as well as those already in employment with the company to refresh their knowledge. ACMEE principle n   Aim Identify job performance skills needed, assess prospective trainees skills, and develop objectives...
4 comments
Read more

Describe how a company achieves strategic fit between its supply chain strategy and competitive strategy?

What does a company need to do to achieve that all-important strategic fit between the supply chain and competitive strategies? A competitive strategy will specify, either explicitly or implicitly, one or more customer segments that a company hopes to satisfy. To achieve strategic fit, a company must ensure that its supply chain capabilities support its ability to satisfy the targeted customer segments There are three basic steps to achieving strategic fit: 1.        Understanding the customer and supply chain uncertainty. First a company must understand the customer needs for each targeted segment and the uncertainty the supply chain faces in satisfying these needs. These needs help the company define the desired cost and service requirements. The supply chain uncertainty helps the company identify the extent of disruption and delay the supply chain must be prepared for. 2.        Understanding the supply chain capab...
Post a Comment
Read more

Meaning, Definition, Nature,Scope and limitation of management accounting.

Meaning:- starting with systematic recording of transaction and cost subsequently implemented by integration of financial and cost record, the basic structure of traditional and accounting has led to emergency of what in technical language is known as management accounting. Definition:- according to institute of c.a.wales"management accounting is the presentation of accounting information in such a way as to assist management in the creation of policy and in the day to day operation of any undertaking. " Nature of management accounting Selective nature Provide data, not the decision Concerned with future It stresses on the study of cause and effect relationship Highly sensitive to management needs Scope of management accounting Financial accounting Cost accounting Budgeting and forecasting Cost control procedure Reporting Tax accounting Method and procedure Limitation of management accounting Based on financial and cost account Lack ...
1 comment
Read more