What is the supply chain & logistic ? please give me detail.?
Answers:
Supply chain management (SCM) is the process of planning, implementing, and controlling the operations of the supply chain with the purpose to satisfy customer requirements as efficiently as possible. Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point-of-origin to point-of-consumption.
Supply chain management must address the following problems:
Distribution Network Configuration: Number and location of suppliers, production facilities, distribution centers, warehouses and customers.
Distribution Strategy: Centralized versus decentralized, direct shipment, Cross docking, pull or push strategies, third party logistics.
Information: Integrate systems and processes through the supply chain to share valuable information, including demand signals, forecasts, inventory and transportation etc.
Inventory Management: Quantity and location of inventory including raw materials, work-in-process and finished goods.
Supply chain execution is managing and coordinating the movement of materials information and funds across the supply chain. The flow is bi-directional.
Physical distribution
This concerns movement of a finished product/service to customers.
Logistics on the other hand is a part of SCM which we can say is physical distribution, the customer is the final destination of a marketing channel, and the availability of the product/service is a vital part of each channel participant's marketing effort. It is also through the physical distribution process that the time and space of customer service become an integral part of marketing, thus it links a marketing channel with its customers (e.g. links manufacturers, wholesalers, retailers).
In other words,Logistics is the art and science of managing and controlling the flow of goods, energy, information and other resources like products, services, and people, from the source of production to the marketplace. It is difficult to accomplish any marketing or manufacturing without logistical support. It involves the integration of information, transportation, inventory, warehousing, material handling, and packaging. The operating responsibility of logistics is the geographical repositioning of raw materials, work in process, and finished inventories where required at the lowest cost possible.
Materials Management is a key business function that is responsible for co-ordination of planning, sourcing, purchasing, moving , storing and controlling materials in an optimum manner so as to provide a pre-decided service to the customer at a minimum cost.
Materials Management's scope is vast. Its sub functions include Materials planning and control, Purchasing, Stores and Inventory.
Supply Chain Management is a cross functional approach to managing the movement of raw materials into an organization and movement of the finished goods out of the organization towards the end consumer
As the corporations strive to focus on core competencies and become more flexible, they have reduced their ownership of raw materials sources. These functions are increasingly being outsourced to other corporations that can perform the activities better or more cost effectively. The effect has been to increase the number of companies involved in satisfying consumer demand while reducing the management control on daily logistics operations. Less control and more supply chain partners led to the creation of Supply Chain management concepts. The purpose of Supply chain management is to improve trust and collaboration among supply chain partners, thus improving inventory visibility and improving inventory velocity.
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