INTRODUCTION

Supply Chain Management (SCM) involves the end-to-end coordination and

optimization of activities involved in the manufacturing, distribution, and delivery

of goods and services. Supply chain management encompasses the strategic

coordination of resources, information, and operations throughout multiple stages,

spanning from the acquisition of raw materials to the delivery of the completed

product to the end consumer. Supply Chain Management (SCM) aims to optimize

operational efficiency, minimize expenses, and boost customer contentment by

Promoting cooperation among suppliers, manufacturers, distributors, retailers,

and other relevant parties.

Logistics, an essential element of supply chain management (SCM),

concentrates on the tangible transportation and warehousing of commodities within

the supply chains. It includes tasks such as transportation, storage, inventory control,

and order processing. Logistics endeavors to guarantee the accurate delivery of

products to their designated location, precisely on schedule, and in optimal shape,

so eliminating any delays and maximizing the efficient use of resources. Efficient logistics management
enhancet operational efficiency, decreases lead times, a.

enhances the overall performance of the supply chain.

SCM and logistics are closely interconnected fields that collaborate to establint.

a smooth and effective movement of goods and information across the supply

chain. Supply chain management (SCM) has a wider scope, including strater?"

planning and coordination, whereas logistics focuses on the detailed operations

aspects of product transportation and storage. Collectively, they have a vital

function in tackling the difficulties of interconnected and intricate supply chains

aiding firms in adjusting to ever-changing market requirements and attaining a

competitive advantage in the marketplace.

SUPPLY CHAIN MANAGEMENT

Supply chain management refers to the systematic coordination and control

of the flow of raw materials and components from the first stages of production to

the final delivery to the end consumer. Operational supply chain decisions, which

have a significant impact on the development, manufacturing, transportation, and

sale of products, are sometimes made multiple times each day in numerous firms.

The intricacy and amounts of things manufactured, as well as the size of the firm,

determine the complexity of the supply chain. However, most supply networks

share common components, including;

Customers: Customers start the chain of events when they decide to

purchase a product that has been offered for sale by a company. If the

product has to be manufactured, the sales order will include a requirement

that needs to be fulfilled by the production facility.

Planning: The planning department will create a production plan to

produce the products to fulfill the customer's orders. To manufacture

the products, the company will then have to purchase the raw materials

needed.

Purchasing The purchasing department receives a list of raw materials

and services required by the production department to complete the

customers' orders.

Inventory: The raw materials are received from the suppliers, checked for

quality and accuracy, and moved into the warehouse.

Production: Based on a production plan, the raw materials are moved

to the production area. These raw materials are used to manufacture the

finished products ordered by the customer and then sent to the warehouse

where they await shipping

Transportation: When the finished product arrives in the warehouse

the shipping department determines the most efficient method to ship

the products so they are delivered on or before the date specified by the

customer.

LOGISTICS

In a business context, logistics refers to the efficient administration of the

movement of goods from their source to their destination, in order to fulfill the

needs of customers or companies. The resources handled in logistics encompass

tangible entities such as food, materials, animals, equipment, and liquids, as

well as intangible entities like time and information. The logistics of physical

things typically entail the amalgamation of information flow, material handling,

production, packaging, inventory management, transportation, and warehousing.

The distinction between logistics and supply chains is frequently a source of

confusion. Logistics is commonly understood as the internal operations of a single

company or organization that involve the distribution of a product. On the other

hand, supply chain encompasses not only logistics but also manufacturing and

procurement, making it more comprehensive. It involves multiple enterprises,

such as suppliers, manufacturers, and retailers, collaborating to fulfill a customer's

demand for a product or service.

Business logistics can be defined as the process of ensuring that the correct

thing is available in the appropriate amount, at the designated time and location,
at a suitable price, and in optimal condition, all for the intended consumer. An

operations manager specializing in logistics will prioritize matters such as inventory

control, procurement, transportation, storage, and the strategic coordination of

these operations, Logistics can be categorized into two main focuses: inbound

logistics, which pertains to internal operations, and outward logistics, which

pertains to external operations.

INBOUND LOGISTICS

An inbound logistics manager oversees all aspects of the incoming flow of

resources required by the company for the production of its goods or services.

The activities will encompass overseeing supplier connections, procuring raw

materials, bargaining for materials cost, and coordinating expedited delivery.

OUTBOUND LOGISTICS

A manager specializing in outbound logistics will primarily concentrate

on two key aspects: storage and transportation. The individual will employ

warehousing methodologies to ensure the security and availability of the

completed products. Given that the products may require immediate transfer to

a consumer, meticulous organization is essential. Minimizing product inventory

can be beneficial as held products do not generate revenue.

Therefore, the outbound logistics manager frequently needs to strike a

balance between cost savings for the organization and meeting consumer demand.

The transportation aspect constitutes the most intricate component of outbound.

logistics.

Logistics is dependent on transportation; without it, logistics cannot exist

Hence, it is important to have the capability to transfer the product from on-

place to another in the most expeditious, economical, and effective manner. Given

the inherent variability in transportation, it is necessary to include issues such

as delays and fluctuations in fuel costs to ensure comprehensive coverage of all

potential situations that could impede the smooth flow of goods.

Although there are several parallels between these two names, they

are distinct concepts with separate meanings. Supply chain management is a

comprehensive concept that connects several processes to gain a competitive edge,

whereas logistics pertains to the transportation, storage, and circulation of goods,

services, and information within the entire supply chain.

Supply chain management, as defined by Michigan State University professors

in the book Supply Chain Logistics Management, entails the cooperative efforts of

companies to link suppliers, consumers, and other partners in order to enhance

efficiency and generate value for the final consumer. The textbook views supply

chain management activities as strategic choices that establish the operational

framework for logistics operations.

The collaboration of multiple companies operating as a supply chain is crucial

in effectively overseeing the movement of raw materials and guaranteeing that

the final products deliver value. Supply chain managers collaborate across several

departments and organizations to ensure the successful delivery of a final product

to the end user while also ensuring compliance with all necessary specifications.

Logistics is a constituent component of the comprehensive and inclusive supply

chain network.

Logistics, as defined by the Council of Supply Chain Management

Professionals, refers to the strategic management of the flow and storage of

goods, services, and information between the point of origin and the point of

consumption. Its purpose is to ensure the efficient and effective fulfillment of

customer requirements.
Logistics, as defined by professors at Michigan State University in the

context of Supply Chain Logistics Management, include many operations such as

transportation, warehousing, packaging, and more. These activities are responsible

for the movement and positioning of inventory, and they play a crucial role in

coordinating the supply chain.

The primary goal of logistics is to ensure the timely and accurate delivery of

the required product to the client, meeting their expectations in terms of quality

and price. The process can be categorized into two distinct subcategories: inbound

logistics and outbound logistics.

Inbound logistics encompasses the processes involved in acquiring items, as

well as their subsequent handling, storage, and transportation. Outbound logistics

encompasses the processes involved in gathering, preserving, and delivering

goods to the client. Logistics encompasses other tasks such as order packing and

fulfillment, warehousing, stock management, and ensuring a balance between

supply and demand.

KEY DIFFERENCE

It is important to remember that while the terms should not be used

interchangeably, they do supplement each other. One process cannot exist without

the other. Here are some key differences between the two terms that will help you

keep from blurring the lines between them.

· Supply chain management is a strategic approach that connects key

business operations within and across firms to create a highly efficient

business model that enhances competitive advantage.

. Logistics include the transportation, warehousing, and dissemination

of commodities, services, and information both within and beyond the

confines of an organization.

.The primary objective of supply chain management is to gain a competitive

edge, whereas the primary objective of logistics is to fulfill customer

demands.

· Logistics, originating from its military origins, has been a well-established

concept for a considerable period, but supply chain management is a

relatively recent phrase.

.Logistics is a component of the supply chain.