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· Inbound Logistics: The activities which are concerned with procurement of material, handling, storage and transportation
· Outbound Logistics: The activities which are concerned with the collection, maintenance, and distribution or delivery to the final consumer.
Apart from these, other activities are warehousing, protective packing, order fulfillment, stock control, maintaining equilibrium between demand and supply, stock management. This will result in savings in cost and time, high-quality products, etc.
Supply Chain Management (SCM) is a series of interconnected activities related to the transformation and movement of raw material to the finished goods till it reaches to the end user. It is the outcome of the efforts of multiple organizations that helped in making this chain of activities successful.
These organizations may include the firms with whom the organization is currently working like partners or suppliers, manufacturers, wholesalers, retailers, and consumers. The activities may include integration, sourcing, procurement, production, testing, logistics, customer services, performance measurement, etc.
Supply Chain Management has a multi-dimensional approach which manages the flow of raw materials and work in progress (semi-finished goods) within the organization and the end product outside the organization till it reaches the hands of the final consumer with a complete emphasis on the customer requirement.
Supply chain is a network of process & Logistics is one of the process
Logistics is a subset of Supply chain.
Supply Chain
Thoeretically supply chain involves the following functions. But some of the following functions are considered separate from supply chain in many organisations depending on the complexity and nature of the business.
1. Sourcing or vendor development
2. Direct material or raw material procurement
3. Indirect or consumables procurement
4. Inventory planning
5. Production planning
6. Warehousing
7. Logistics
Logistics
Logisitics which is a part of supply chain deals with the movement of goods. This will include arraging transportation (air/road/sea/rail), corresponding documentation, customs clearance (incase of import/export) etc.
Logistic refers to the flow of good from one point to onother, which is a part of supply chain while supply chain is a broader concept, supply chain is a process to deliver goods and service from the point of origin to the point of consumption. it includes material managment,inventory managment, capacity managment, logistics, etc
Suppy chain is a SYSTEM used by an organisation that involves people and their activities to move raw materials from the producer to its final users as finished goods. Logistics is the METHOD used to get those finished goods to consumers for example it can be through AIR, RAIL, ROAD or/and SEA. Depending on the type of goods in question
logistics refers to the distribution process within the company
supply chain includes multiple companies such as suppliers, manufacturers, and the retailers.
Logistics is a one of the Supply Chain functions while Supply chain is the integration of key business process from end user through original supplier that provides products, services, and information that add value for customers and other stakeholders
The Supply Chain is a big umbrella that includes beneth the 3 teams of: Purchasing, Logistics and WH, and Planning.
and in some organizations, the Logistics is not separate from WH yet. so the teams are 4 there.
Although both Supply chain and Logistics are inherently dependent on each other, they can be catergorised as follows:
Supply chain involves the entire planning, procurement, evaluating and movement of goods. And involved a network of agencies/companies to be involved.
Logistcs is generally the use of a organisation, such as a freight forwarder to move the goods from one place to another.
Logistic refer to inventory management such as inventory recieving, proper arrangement and despatching timely while SCM is entire process which will play the role of mediator in betweeen supplier and end user.
Supply Chain:
Supply Chain Management (SCM) is a series of interconnected activities related to the transformation and movement of raw material to the finished goods till it reaches to the end user.
Supply Chain Management has a multi-dimensional approach which manages the flow of raw materials and work in progress (semi-finished goods) within the organization and the end product outside the organization till it reaches the hands of the final consumer with a complete emphasis on the customer requirement.
Logistics:
The movement of goods, services, information and capital, right from the sourcing of raw material, till it reaches its end consumer is known as Logistics. The objective behind this process is to provide the right product with the right quality at the right time in the right place at the right price to the ultimate customer. The logistic activities are divided into two broad categories they are:
· Inbound Logistics: The activities which are concerned with procurement of material, handling, storage and transportation
· Outbound Logistics: The activities which are concerned with the collection, maintenance, and distribution or delivery to the final consumer
Other Logistics activities are warehousing, protective packing, order fulfillment, stock control, maintaining equilibrium between demand and supply, stock management. This will result in savings in cost and time, high-quality products, etc.
Key Differences Between Logistics and Supply Chain;
The following are the major differences between logistics and Supply Chain:
1. The flow and storage of goods inside and outside the firm is known as Logistics. The movement and integration of supply chain activities is known as Supply Chain Management.
2. The main aim of Logistics is full customer satisfaction. Conversely, the main aim behind Supply Chain is to gain substantial competitive advantage.
3. There is only one organization involved in Logistics while some organizations are involved in Supply Chain.
4. Supply Chain Management is a new concept as compared to Logistics.
5. Logistics is only an activity of Supply Chain Management.
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