Logistics and Supply Chain Management BMS510

LOGISTICS AND SUPPLY
CHAIN MANAGEMENT
BMS510

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
A- Different principles, concepts and processes of supply chain................................................1
B-The contribution of appropriate strategy in the competitiveness of a business.......................4
C- Critically evaluating problems connected with development of supply chain strategy,
determining solutions supported good practice models...............................................................5
D- To evaluate the different relationships better supply chain and various other areas..............8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Management of supply chain and logistics is considered as the area which is connected with
supply and storage of the products of an organization. It involves different procedures of addition
and maintenance of properties. Logistics and supply chain management is much broader than
only managing the logistics. It is defined as the process in which goods are coordinate and
managed in the company.it incorporates the movement of the goods. The main aim of logistics
management is to gain customer satisfaction whereas for supply chain management competitive
advantage matters more in the market. Multiple organizations like suppliers, distributors and
many more are involved in managing the supply chain. It is an advanced version managing the
logistics.( Anca, V., 2019) In today’s world logistics and supply chain management is playing a
very crucial role in day to day business activities. In this report we will discuss on the different
concepts, principles, and processes of supply chain and how an appropriate strategy can improve
the competitive advantage. Here we are talking about one of the most successful American
automotive and aerospace company named “TESLA” and “SpaceX”. This report will also
elaborate on the barriers which are concerned with the development of appropriate strategy also
the interrelationships among different areas and supply chain of an organization.
MAIN BODY
A- Different principles, concepts and processes of supply chain
The logistics and supply chain is the process which involve some steps of getting a
product to the consumer. Movement of goods is also defined as the supply chain management.
This process involve steps like moving and transformation of raw products into final goods and
shipping those final goods to the customers. The individuals involved in supply chain
management are retailers, suppliers, distributors, warehouses and many more. Managing the
supply chain is a very crucial part of business management. It is cost effective and if this part is
good then it reduces the company cost and increases the profitability. Successful supply chain
management ensures that the goods are received by the correct person and make sure consumers'
satisfaction is effectively attained. All the planning, designing, manufacturing and delivering the
product to the customer end comes under supply chain management. (Abdirad, M. and Krishnan,
K., 2021)The aim of managing the supply chain is to gain better recognition in the market and
improving the quality of the product which results in increased sales and cost. There are many

types of supply chain management in any organization. Tesla and spacex also have these types of
supply chain management in their company.
Continuous flow model:
This flow model is in very demand these days and this is traditional model which basically works
for the company which produces the same type of products with very less variations in it. This
model requires no change in the design of the product. (Choi, T.M., 2018)This lack of instability
means supervisors can modernize production and keep constricted control over inventory.to
prevent from bottlenecks this model is used by the managers as they have to reload new raw
materials.
Fast chain model:
This model works according to the trend coming in the market. The companies use this model to
sell the products based on trends that may have limited time period. They need to change their
ideas very frequently while using this type of model in the organization.one of the best example
of fast chain model is fast fashion industry which changes very rapidly and customer buy clothes
according to the trend and fashion.( Nunes, Causer and Ciolkosz, 2020)
Flexible model:
This model is used by the companies which manufacture on seasonal or holiday basis. They
change their production according to the demand of the product .for earning the profit they use
fresh material, accounts and labor costs as well.
The tesla inventory management system has a very strong supply chain and has got very
attention in the market. The main purpose of management of Tesla is to have appropriate supply
chain that has many qualities in itself as the productivity of the company may grow more and
becomes more productive. There are mainly two key success in the vertical integrated supply
chain which are cost and another one is control. Another organization which we are talking about
is spacex founded in 2022 by Elon musk also provides a global supply chain management
solution to the market. From planning to execute the products spacex all are parts of supply chain
management. (Wang, Y., Qin, S. and Zhang, C., 2021)This company also utilize technologies for
supply chain like E2E warehouse management system, vehicle Management system. There are
seven principles of supply chain management and which are as follows. The first principle is to
familiarize supply chain to customer’s needs, modify logistics network is the second principle of
supply chain management, the next one is to support demand preparation across supply chain,