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Logistics & Supply Chain Management

Supply Chain Management, in general, is the management and organisation of the movement of goods and services - this can entail, for example, the control of production, inventory, location and transportation.

Logistics management, which forms one part of supply chain management, is devoted to the coordination and control of services flowing between production and consumption. The job of the logistics team is those to ensure effective and efficient movement of goods to the customer to both reduce company expenses and increase customer satisfaction.

What does logistics management involve?

Formerly, it was common that logistical tasks were undertaken by a variety of different departments, each completing their part of the chain. However, there has been an increasing use of integrated logistics which, simply, brings all tasks of a logistical nature under one business unit.

Thus, logistics management now involves itself in an array of crucial areas within supply chain management, some of which include:

-Transport -Warehouse management -Production Planning -Purchasing -Customer Service

Inbound and Outbound logistics

There are two main types of logistical activity: inbound logistics and outbound logistics. Inbound logistics refers to the process of sourcing, expediting, and receiving materials into the business. It therefore deals with the raw materials and items that arrive from suppliers, deploying these as appropriate.

Outbound logistics relates to the storage and transportation of supply chain management. Regarding the storage, those dealing with outbound logistics will organise and implement methods to ensure that the warehouse and its functioning is as efficient as possible, in order to serve the demands of the customer. On the other end, outbound logistic teams have to deal with the transportation of their goods and services to the customer. Due to the great unpredictability that transport brings, it is crucial to have good methods in order to successful deliver to the customer.

What is the importance of logistics?

Logistics is an essential part of the supply chain, it is key for a number of reasons:

  • If just one part of the activities under the logistics remit is not functioning correctly, the whole chain may break, resulting in the inability for a business or organisation to carry out their services.

  • Effective logistics management will result in increased customer experience and thus help the growth of the business. Undamaged products that are transported quickly to the customer is one of the principle roles of the logistics team.

  • To reduce the loss for the business, in terms of time and money. The logistics team is heavily involved in the efficiency performance of the business. Being able to optimize the productivity and resources in supply chain management will reflect very positively on overall business results.

What is the difference between logistics and supply chain management?

Logistics management remains an integral part of the supply chain management process. However, supply chain management also encompasses other areas. For example, supply chain management also aims for product innovation, involving itself in competitive advantage, and managing the whole process.

If you wish to know more about logistics and supply chain management, please refer to these links:

Inbound and Outbound logistics

What is Logistics Management?

Logistics and Supply Chain Management

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