Concept of Supply Chain Management (SCM)
Supply Chain Management (SCM) is the coordinated management of all activities involved in sourcing, producing, and delivering products or services from suppliers to end customers.
Thank you for reading this post, don't forget to subscribe!- It encompasses procurement of raw materials, manufacturing, inventory management, transportation, and distribution.
- The main goal of SCM is to optimize efficiency, reduce costs, ensure timely delivery, and create value for customers.
Effective SCM ensures that the right products reach the right place, at the right time, and in the right condition, while maintaining strong relationships with suppliers and partners.
Concept of Logistics Management
Logistics management is a key component of supply chain management that focuses on the planning, implementation, and control of the movement and storage of goods, services, and information.
- It involves transportation, warehousing, inventory management, order fulfillment, and distribution.
- The objective of logistics management is to ensure that products are delivered to the right location, at the right time, and in the most cost-effective manner.
Efficient logistics management reduces delays, lowers costs, improves customer satisfaction, and supports overall business performance.
In simple terms, while SCM manages the entire flow of goods and information from supplier to customer, logistics management focuses specifically on the movement and storage aspects within that chain.