What is the difference between Logistics and supply chain?

The basic difference between Logistics and Supply Chain Management is that Logistics management is the process of integration and maintenance (flow and storage) of goods in an organization whereas Supply Chain Management is the coordination and management (movement) of supply chains of an organization.

Why should a company understand its supply chain?

Why is supply chain management important? A well-managed supply chain can significantly reduce a company’s operating expenses, therefore driving up profits. This efficiency can be reflected in every aspect of the chain, from idea creation to the marketing of the final product.

What are the responsibilities of a supply chain?

Supply chain management job responsibilities include planning the procurement of material, production tasks, controlling the inventory and managing the logistics. Supply chain management personnel are required to handle a number of other tasks which are mentioned below in detail.

What are the objectives of a supply chain?

To maximize overall value generated. Higher SCM profitability,higher success: The higher the supply chain profitability or surplus,the more successful is the supply chain.

To look for Sources of Revenue and Cost. There is only one source of Revenue i.e. customer.

Replenishment of the Material or Product whenever required. Replenishment means the restoration of a stock or supply to a former level or condition.

What are the features of a supply chain?

Features of Supply Chain Management Management of Inventory. Supply chain management focuses on maintaining an optimum inventory always in organisation. Processing Customer Requirements. Supply chain management accelerates the production processes of organisation. Forecasting of Demand. Supplier Relationship Management. Managing Logistics and Shipping. Return Management.

What’s the difference between value chain vs. supply chain?

The main difference between supply chain and value chain is that supply chains follow the product from the supply to the customer whereas, in a value chain, the starting point is at the customer; evaluating customer’s needs and then tracking back to manufacturing to determine how the processes can be modified to meet these needs.