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!
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