abhishreshthaa
Abhijeet S
LOGISTICS v/s SUPPLY CHAIN MANAGEMENT
It is concerned with getting goods & Services where they are required & When they are desired
SCM encompasses all the activities associated with movement of goods from raw material stage to the end user.
Narrower concept
Broader concept
There are 2 flows in logistics: Value flow (i.e. flow of goods & Service), Information flow.
There are 3 flows in SCM: Value flow (i.e. flow of goods & services), information flow & cash flow.
Logistics is mainly concerned with optimizing flow within the organization i.e. Emphasize on internal integration.
SCM recognizes that inter integration by itself is not sufficient. So emphasize on it as well as external integration.
The focus of logistics management is Upon the mgmt of resources within the organization.
The focus of SCM is upon the mgmt of relationships in order to achieve A more profitable outcome for all parties in the chain.
Logistics is essentially a planning & orientation & frame work that seeks to create a single plan for the flow of product & information through a business.
SCM builds upon this frame work
& seeks to achieve linkage &
co-ordination between processes of
the other entities in the pipeline, i.e.
suppliers & customers & the
Organization, itself.
Logistics adds value when inventory
is correctly positioned to facilitate
Sales.
The best SCM practice is when it
improve asset productivity &
exceeds in reducing operating costs,
Compressing order cycle time.
It is concerned with getting goods & Services where they are required & When they are desired
SCM encompasses all the activities associated with movement of goods from raw material stage to the end user.
Narrower concept
Broader concept
There are 2 flows in logistics: Value flow (i.e. flow of goods & Service), Information flow.
There are 3 flows in SCM: Value flow (i.e. flow of goods & services), information flow & cash flow.
Logistics is mainly concerned with optimizing flow within the organization i.e. Emphasize on internal integration.
SCM recognizes that inter integration by itself is not sufficient. So emphasize on it as well as external integration.
The focus of logistics management is Upon the mgmt of resources within the organization.
The focus of SCM is upon the mgmt of relationships in order to achieve A more profitable outcome for all parties in the chain.
Logistics is essentially a planning & orientation & frame work that seeks to create a single plan for the flow of product & information through a business.
SCM builds upon this frame work
& seeks to achieve linkage &
co-ordination between processes of
the other entities in the pipeline, i.e.
suppliers & customers & the
Organization, itself.
Logistics adds value when inventory
is correctly positioned to facilitate
Sales.
The best SCM practice is when it
improve asset productivity &
exceeds in reducing operating costs,
Compressing order cycle time.