Understanding logistics management and supply chain

So take out your notebook, sharpen your pencil, and take this Inbound Logistics short course on the fundamental concepts driving logistics theory and practice today. Until recently, logistics activities had one primary focus—to minimize unit transportation costs for shipments to downstream customers. Systems theory espouses managing an enterprise or organization as an integrated whole for total optimal performance—lowest total costs and optimum service level, for example—as opposed to managing discrete functions individually for lowest costs. But if you ask, 'What is it costing us to have the inventory sit on the warehouse floor for a few more days, you start to see the real cost of that decision.

Understanding logistics management and supply chain

Get started Bring yourself up to speed with our introductory content. What is the difference between logistics and supply chain management? Logistics is part of supply chain management, but the two terms are often used synonymously.

Share this item with your network: Dave Turbide Anyone new to the logistics or the supply chain management arena may wonder what the differences are or whether they mean the same thing. What logistics and supply chain management encompass The term logistics comes from the military, where it refers to procurement, supply, maintenance, movement of personnel and other support functions.

Understanding logistics management and supply chain

In the industrial world, logistics is used to mean obtaining, producing and distributing material not personnel. Everyday usage generally focuses on transportation and warehousing. Many transportation providers call themselves logistics companies, logistics partners or logistics service providers.

The supply chain community recognizes any and all providers of services, such as contract warehouse providers, shipping companies and transportation service providers -- e. Supply chain management includes acquisition, movement, storage, deployment and distribution of material from the mine to the landfill or farm to table -- in other words, the entire lifecycle.

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Despite these differences, today, the terms logistics and supply chain management are often used interchangeably as there is much overlap in the definitions. Technology for logistics and supply chain management In a global manufacturing environment, supply chains have become increasingly complex.

To that end, logistics and supply chain management software cover a wide range of functions. Supply chain software covers a wider range of functions, including supply chain planning, inventory optimization, demand management, demand planning, sales and operations planning, and various flavors of analytics and optimization applications, among others.

Although the terms logistics and supply chain management are often used interchangeably, when it comes to software, logistics generally focuses on a more narrow area of the supply chain, such as transportation, warehousing and other closely related functions.

Software includes modules, or components, of an ERP systemstand-alone applications and connected third-party applications with built-in interfaces to major ERP suites.

Because there is a great deal of interaction between the logistics and supply chain functions, it is imperative that all these applications are fully integrated to share information and visibility across the entire supply chain.

This was last published in September Related Resources.1. What is Logistics and Supply Chain Management? "Logistics typically refers to activities that occur within the boundaries of a single organization and Supply Chain refers to networks of companies that work together and coordinate their actions to .

But logistics is a part of supply chain and that means whoever manages your supply chain will be responsible for managing freight forwarders, shipping companies, parcel delivery companies (like Fedex and UPS), customs brokers and third party logistics providers (3PL). Logistics and Supply chain is the crucial part for the companies across E-commerce, FMCG, manufacturing, retail and many such domains.

The organizations depend heavily on an efficient logistics and supply chain professional to make their products and services available to customers. Join Eddie Davila for an in-depth discussion in this video, Understanding logistics, part of Supply Chain Foundations.

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Logistics Fulfillment Management (Deliver)— 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 customers' requirements. This includes customer service ordering, shipment planning.

Understanding the 3 Levels of Supply Chain Management. 4 Comments / Features. Creating a network of reliable suppliers, transporters, and logistics handlers; Long-term improvements and innovations to meet client demands; 4 thoughts on “Understanding the 3 Levels of Supply Chain Management” A Ramachandran.

What is Logistics and Supply Chain Management?