Supply Chain Management vs Logisitics
I want to apply in supply chain management but I am confused with the term logistics, can you please shed some light on the topic?
Logistics is the term used widely in the business world from ages now, since globalisation. You don’t have to be confused in the two terms as Logistics Management is also known as Supply chain management. They both are same in terms of industry but the terminology used is different. Supply chain management involves all the activities starting from the time of raw materials extraction to the minute you pay money or use your credit card to buy the final product. The main focus of this particular field is on planning and forecasting, purchasing, assembling the product, moving, storing and keeping track of a product as it flows toward you and other consumers. In simpler terms, we can say that supply chain management is that part of the supply chain that happens to plan, implement and control the efficient, effective forward and reverse flow of goods and services. It also involves storage and related information between the point of origin and the point of consumption in order to meet customer and legal requirements.
In reality logistics is a channel of the supply chain which adds the value of time and place utility. This field ensures that the customers are provided ‘the right item in the right quantity at the right time at the right place at the lowest cost’ by the businesses as it has become mandatory in today’s globalised supply chain. It is very important to understand the logic that goes behind this field as this will help you while you are doing your course in this field. It includes co-ordination and collaboration with channel partners, which can be suppliers, intermediaries, third party service providers, and customers.