Difference between Logistics and Supply Chain Part 2

Supply Chain

Supply Chain is the entire process consisting of  all elements in a product cycle, for instance from picking of the vegetables at a plantation in Point A to transporting the veg to the shelf at a merchant in Point B

Supply chain requires a community of vendors, transporters, storage warehouse, distribution centres, transport lines, logistics services all working collectively from the sale of a merchandise till its transport to you and me.

Supply chain management is the administration of all the supply chain tasks in creating and operating the supply chain as efficiently and effectively as you possibly can find.

This management might include product design, locating, manufacturing, strategic planning and all the process needed to manage and produce these actions.

A straight forward supply chain might be composed of couple of different procedures that are connected to the transfer of merchandise along the chain. A traditional supply chain begin and concludes with the customer.

Buyer places sales order with the vendor that will supply the merchandise that they are thinking about.

Founded on this sales order, the vendor will start the planning phase. The vendor will produce a manufacturing plan, if the merchandise must be fabricated or buying plan, if the vendor is sourcing the merchandise from a third party, or supply plan, if the vendor currently has the items can supply immediately.

The purchase procedure follows the planning process whereby the vendor will need to purchase the raw materials if they're manufacturing or source/procure the goods from elsewhere..

The next action will be the production function where manufacturing is required whereby the order is created.

This is followed closely by an inventory processes that'll consist of receiving the goods from suppliers, storage and inventory tracking. Based on the kind of business, this may be the beginning of the logistics process or may form component of the logistics process.

Final the transportation process which comprises of logistics and shipping.

Buyer gets the merchandise and that is the conclusion of that specific chain.

The function of controlling this is known as Supply Chain Management

Bottom Line

Essentially, there's a tremendous difference between Logistics and Supply Chain and I have not even discussed the other associated sectors such as Maritime, Shipping and Freight...

Speedshift | Logistics and Supply Chain  call 0845 519 0270