Logistics and Supply Chain Management
The major difference between Logistics and Supply Chain Management lies in the fact that Logistics involves all the activities that are related to the movement and storage of raw materials that are required in the production process. The raw materials include items such as electricity, water, metal, and oil. While the main focus of Supply chain management deals with the transportation of finished goods from Logistics and Supply Chain Management the point of origin to the final destination. The aim of both processes is to make the maximum use of resources available in a timely manner. Both the processes require a considerable amount of human interaction.
Material management
Some of the commonly used terms within the realm of logistics and supply chain management are distribution, material management, manufacturing and assembly, and logistics planning and systems. Distribution refers to the act or process of moving the raw materials and/or finished goods to the end consumer. Material management involves the identification, analysis, and prioritization of raw materials needed in the production process. Assembly includes the process of assembling the components of the product. All these processes are holistic in nature.
Transportation of products
Some of the activities related to logistics include inbound and outbound transportation of products, stock control, material inventory management, and system checking. Distribution involves the movement of resources between inbound and outbound logistics markets. Material inventory management deals with the supply of stock materials used in manufacturing and assembly.
Delivery of goods
At the same time, the term Logistics refers to the entire set of activities required for the successful delivery of goods at the right time to the right place. At the receiving end, the term Logistics is used interchangeably with transportation. In simple terms, transportation is used to bring the ordered product to the customer’s doorstep at the right time. On the other hand, Logistics is used to improve the process used in receiving and transporting goods, with the aim of improving the quality, cost, reliability, and throughput of the entire process.
Inbound logistics processes
The aim of Logistics is to achieve the lowest cost, lowest risk, and quickest time to market. In other words, to achieve these goals, there has been consistent demand from customers for improved inbound logistics processes, including better information flow, better tracking of inventory, and lower cost. This has resulted in the increased usage of software applications that have been design specifically for the purpose of inbound logistics. Some of these software applications have been develop by third-party logistics providers.
Key aspects of logistics
Meanwhile, transportation is one of the key aspects of logistics. Logistics transportation involves the movement of materials or finished goods from point A to point B. Therefore, are two categories of transportation: direct and indirect. Direct transportation involves the movement of goods from one warehouse to another, such as shipping. For example, Indirect transportation involves movement of goods between warehouses and suppliers. In some cases, third-party logistics providers act as transportation agents for their clients.
Warehousing focuses
Other topics in logistics and supply chain management include warehousing. Warehousing focuses on the provision of equipment and supplies to dealers and producers. After the design and manufacture phase is complete, distributors, wholesalers, and manufacturers sell the products to retailers, who in turn sell to individual buyers. Wholesale and distribution are the two main functions of warehousing. Warehouse owners manage the storage, receiving, and storage of incoming supplies.
Logistics and distribution
For example, they go hand in hand with each other, and supply chain management is need to maximize the potential of each term. In the competitive arena, having a solid understanding of both logistics and supply chain management concepts is essential. Meanwhile, a solid strategic business plan that considers both terms as relevant to the operations of your company is essential.
