Kamalesh V is a student studying Logistics Management at Ayyanar Janaki Amma College. The document defines supply chain as the system involved in supplying products to consumers, from raw materials to finished goods. Logistics management is defined as planning and controlling the efficient flow of goods and services from origin to consumption. The objectives of supply chain management are also outlined. Key differences between logistics and supply chain management are identified as aims, number of departments involved, and relationships. Supply chain integration, advantages, disadvantages, types of tools, and essential features are also discussed.
1. Name : KAMALESH. V
Class : BBA
College : AYYA NADAR JANAKI AMMA COLLEGE
Subject : LOGISTICS MANAGEMENT
2. Defining supply chain
In commerce, a supply chain is a system of organizations,
people, activities, information, and resources involved in
supplying a product or service to a consumer. Supply chain
activities involve the transformation of natural resources, raw
materials, and components into a finished product that is
delivered to the end customer.In sophisticated supply chain
systems, used products may re-enter the supply chain at any
point where residual value is recyclable
3. DEFINING LOGISTICS MANAGEMENT
â– Logistics management is the part of the supply chain process that
plans, implements, and controls the efficient, effective flow and
storage of goods, services, and related information from the point
of origin to the point of consumption to meet customer
requirements.
4. Objectives of supply chain management
1.What is a Supply Chain? A supply chain consists of the flow of products and services
from/to: --Raw materials manufacturers –Intermediate products manufacturers –End product
manufacturers –Wholesalers and distributors –Retailers and, --End customers Connected by
agents, transportation and storage activities, and integrated through sharing of information,
planning, and processing activities.
2. A Generic Supply Chain End product manufacturer Wholesalers, distributors Intermediate
component mfgs. Raw material suppliers Retailers End customers Product & service flow
Information and planning
3.Typical Supply Chain for a Manufacturer Supplier Supplier Supplier Storage } Mfg. Storage
Dist. Retailer CustomerTypical Supply Chain for a Service Supplier Supplier }Storage Service
Customer
4.What is Supply Chain Management? Here are two definitions:The design and management
of seamless, value-added process across organizational boundaries to meet the real needs of
the end customer – Institute for Supply Management Managing supply and demand, sourcing
raw materials and parts, manufacturing and assembly, warehousing and inventory tracking,
order entry and order management, distribution across all channels, and delivery to the
customer –The Supply Chain Council
5. Difference between logistics and SCM
â– In the world of business and operations, the terms logistics and supply chain are prevalent
and often used interchangeably. Now, some industry professionals say that there are a lot of
similarities between logistics and supply chain management. On the other hand, some
professionals claim that role of logistics in supply chain management is pretty different from
the common views.
â–
â– Now, there is evidently a mixed bag of views on differences between logistics and supply
chain management. Like in Europe, supply chain management is largely known as logistics
management. And in the United States, they prefer to call it as supply chain management
only.
â–
â– While both these terms hold some sort of similarities, they do possess different concepts with
different meanings factually. Before jumping on to the key differences between logistics and
supply chain management, let’s have a look at the concepts individually.
6. DIFFERENCE
â– Aims and goals: One of the major differences is in their aims and goals.
Objectives of logistics within a particular department of a company is to
ensure that the end consumers receive satisfaction during their
exchange and interactions with the company.
â– Supply chain management aims at achieving competitive advantage
through efficiency. It also tries to procure raw materials at low prices and
sell the final products at high prices.
â– Departments:The total number of departments involved in both the
cases are significantly different. In supply chain management, the
number of departments of an organisation are much higher than that
involved in logistics.The simple reason is the former includes
interactions with multiple organisations and customers.
7. Difference
â– Relationship
â– With EachOther: Logistics is a part of supply chain management
to handle and manage specific tasks. Supply chain management
looks after the entire process of buying, supplying,
manufacturing, selling etc.; logistics bridges the gap between
these different segments.
â– With Other Sections: Unlike supply chain management, logistics
doesn’t have any active role in handling different departments
within an organisation. Supply chain management participates
thoroughly in research, purchasing, manufacturing, marketing
and selling of goods.
8. DEFINING SUPPLY CHAIN INTEGRATION
â– Supply chain integration essentially means that the information
and communication systems of all stakeholders are able to
seamlessly exchange information through all planning, execution
and completion of transport and logistics operations throughout a
product’s life time.
9. Supply Chain integration
Baseline –This is the first stage, and it is when every department or system within a company is
managing their own supply chain, and related issues. Companies also refer to this as a siloed
approach, and while it can have some benefits, it is quite inefficient.
Functional Integration – In this next stage, all the different departments within a company will
work together to help to improve efficiency and reduce cost.This could be done by combining
orders, scheduling jobs together, or other important steps.
Internal Supply Chain Integration – All the departments within a company are connected using
the same systems.This will almost always involve using some type of IT infrastructure solution
that allows the departments to work efficiently together, share their needs, and identify
collaboration opportunities.
External Supply Chain Integration –The final stage involves external vendors as well as all of the
internal departments. Providing a vendor with system access, and encouraging them to function
almost as another department helps to generate the best possible results.
10. Advantage of supply chain
â– Advantages of Supply Chain Management.
Cost efficiency. Enhance output. Avoids delay
in process. Easily identify problem areas.
Better collaboration.
11. Disadvantage of Supply Chain
â– Disadvantages of Supply Chain Management. Expensive
to implement. Complicated. Lack of co-ordination
among departments. Requires trained and personalized
staff. Lack of reliability
12. Types of supply chain Management tools
â– The most common features of supply chain management software include
■Inventory management – for tracking and managing the availability of raw
materials, stocked goods or spare parts.This feature can also help with asset
management, barcode integration and future inventory and price forecasting.
■Order management – for automating purchase order processes. For example,
generating and tracking purchase orders, scheduling of supplier deliveries, and
creating pricing and product configurations.
13. ■Logistics and shipping status – for coordinating
transportation channels, improving delivery performance
and boosting customer satisfaction.Warehouse
management features can help with storage optimisation,
labelling, labour management and more.
■Forecasting – for anticipating customer demand and
planning procurement and production processes
accordingly. Efficient forecasting can help remove the need
to buy unnecessary raw materials or store excess finished
goods on warehouse shelves, hence reducing costs.
■Return management – for inspection and handling of
damaged or faulty goods, and processing of refunds or
insurance claims.
14. Essential Features of SCM
â– Ability to integrate throughout the supply chain.
â– Real-time and collaboration capabilities.
â– Process optimization abilities
â– Analytics and forecasting
â– Customization
â– Cloud-based access and mobility.
â– Security.
â– Scalability.
15. Ability to integrate throughout the
supply chain
â– Technology is an enabler, and a digital solution
should introduce functionalities that span the entire
supply chain, integrating multiple entities like
suppliers, OEMs, shippers, warehouse centers, and
customers. It should connect with all your other
applications, including enterprise software, legacy
systems, third-party applications, help desk, and
email—regardless of the information source,
operating system, or platform.This can eliminate
connectivity issues and enable efficient information
flow across a chain.
16. 2. Real-time and collaboration capabilities
Real-time information is essential to avoiding things like
bottlenecks, missing goods—and unhappy customers.With
real-time capabilities, organizations are empowered to respond
to changes in the supply chain immediately, as they arise.
Effective supply chain management software should allow
multiple stakeholders to work together on a project so that
they’re on the same page, without the need for frequent back
and forth communication or manual updates.
17. 3. Process optimization abilities
â– If routine, repetitive tasks are automated, it
enables staff to work on more revenue-generating
ones.Apart from automating operational tasks with
custom rules, businesses can leverage AI and
machine learning to optimize other tedious tasks,
as well.
18. 4. Analytics and forecasting
â– Along with automating day-to-day tasks, good supply chain
management software should help you evaluate your business, with
built-in analytics and forecasting capabilities to help you
â– Understand the health and performance of your business
â– Identify bottlenecks
â– Capitalize on your current strengths
â– Anticipate customer demand and plan future production
19. 5. Customization
â– Prebuilt components in the application and customized
configuration of business rules introduce flexibility that
helps businesses adapt to changes quickly and go to market
faster, with customized solutions for consumers. Some
supply chain solutions let developers extend their features
with programming languages like Java and Python.Open
architecture also encourages organizations to build their
own applications to suit their unique requirements like
developing multiple variations of a product to cater to
different customer segments, thus maximizing profitability.
20. 6. Cloud-based access and mobility
â– With cloud-based supply chain software, businesses can be accessed by
authorized users from anywhere, at any time, so they can continue to
manage, track and monitor the progress of transactions on the move. An
additional benefit is that businesses can set up a cloud-based solution at a
lower cost, in less time, and with less risk than investing in an on-premise
system.
â– Organizations that have access to a mobile app for managing their supply
chain and logistics functions have a better chance of staying up to date on
various activities, like order status or shipping. Real-time alerts can be sent
directly to users’ mobile phones, collaboration between different parties is
enhanced, and immediate action can be taken in case of any issues.