Supply Chain Management – Boundaries & Relationships:
Supply Chain Management is an integrating
function with primary responsibility for linking major business
functions and business processes within and across companies
into a cohesive and high-performing business model. It includes
all of the Logistics Management activities noted above, as
well as manufacturing operations, and it drives coordination
of processes and activities with and across marketing, sales,
product design, finance and information technology.
Definition of Logistics Management:
Logistics Management is that part of Supply
Chain Management that plans, implements, and controls the efficient,
effective forward and reverse flow and storage of goods, services
and related information between the point of origin and the
point of consumption in order to meet customers' requirements.
Logistics Management – Boundaries & Relationships:
Logistics Management activities typically
include inbound and outbound transportation management, fleet
management, warehousing, materials handling, order fulfillment,
logistics network design, inventory management, supply/demand
planning, and management of third party logistics services
providers. To varying degrees, the logistics function also
includes sourcing and procurement, production planning and
scheduling, packaging and assembly, and customer service.
It is involved in all levels of planning and execution – strategic,
operational and tactical. Logistics Management is an integrating
function, which coordinates and optimizes all logistics activities,
as well as integrates logistics activities with other functions
including marketing, sales manufacturing, finance and information
technology. |