What is Logistics and Supply Chain Management?
You place an order for a product, and just a few days later, you’re happily enjoying the satisfaction of owning it. It seems simple on the surface. But behind every successful transaction is a complex series of coordinated activities ensuring that the product reaches you from its point of origin as quickly as possible. These activities are known as Logistics and Supply Chain Management—an essential factor in ensuring the success and full lifecycle of products and services.
So, what exactly is Logistics and Supply Chain Management?
Logistics and Supply Chain Management is a chain-oriented activity. It is a connected network of processes that work together to produce and deliver goods and services into the hands of the end consumer. Simply put, it ensures the smooth lifecycle of a product and enables businesses to operate at maximum efficiency.
What do Logistics and Supply Chain Management involve?
Logistics Activities
Logistics acts as the intermediary step that ensures goods (products or services) are delivered to consumers in the fastest way possible. It includes activities such as:
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Import and export transportation
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Fleet management
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Warehousing
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Materials handling
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Order fulfillment
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Inventory management
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Demand and supply planning
In addition, logistics often encompasses upstream tasks like sourcing raw materials, production planning, product packaging, and customer service.
Supply Chain Management Activities
Supply Chain Management focuses on the coordination of production, inventory, location, and transportation to respond quickly and efficiently to market demands. It covers all aspects of logistics management and extends further to include:
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Strategic planning
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Procurement and sourcing
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Operations management
In essence, it ensures every component in the chain—from raw material suppliers to final delivery—is aligned and optimized to deliver value to both the business and the customer.
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