Logistics and Supply Chain Management

1189 words 5 pages
Topic: Do the terms, ‘logistics management’ and ‘supply chain management’ have the same meaning in operations and why logistics management might be of strategic importance to a manufacturing or service organisation.

During last two decades, the importance of logistics has been noticed around the world. In global markets, the effects and further developments of logistics and supply chain management for corporate success has increased significantly that result in a large amount of companies have taken actual benefits in logistics, such as reducing costs, enhancing customers' satisfaction and increasing sales. However, some people are confused with the relationship between logistics and supply chain management, what logistics or logistics
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Logistics is regarded as a section of SCM indicates that it will affect how the company and its related firms in the supply chains can reach their goals and objectives. Furthermore, Ron Basu & J. Nevan Wright(2008) claims that supply chain management is a series of methods performed to the efficient integration of suppliers, manufacturers and warehouses in order to produce and distribute goods for the right quantities, locations and time, so that minimize the total costs while satisfy the customers' demand. Another example, according to LeMay, Stephen A., Hanna, Joe B.(2002), the coordination of supply management, operations and integrated logistics applied to keep a continual flow of goods and services are involved when you manage a supply chain. Moreover, Larson, P., Poist, R., & Halldórsson, Á.(2007) asserts that the management of these integrated systems of suppliers, manufactures and intermediaries which establish a supply chain is defined as supply chain management, this is designed for organisations to completely control and coordinate products and services throughout the channel of distribution. In addition, Douglas M., James R. & Lisa M.(1998) also states that logistics has been called business logistics, distribution, materials management and supply management,etc, the common among these terms is that they all address the management of the flow of products or materials and services from the beginning to the point of consumption. Therefore,

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