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Essay on Supply Chain and Logistics

   

Added on  2020-12-29

11 Pages3599 Words58 Views
SUPPLY CHAINS ANDLOGISTICS ESSAY

Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9

INTRODUCTIONSupply chain is a system of people, organizations, information, activities and resourcesinvolved in moving services or products from supplier to customers and logistics is simplyimplementation and organization of complex operations or flow of things between origin pointand consumption point for meeting customers and corporation requirements. Both supply chainand logistics have major impact if they want to operate globally. This essay will cover detailsabout Supply chain management and logistics and will explain all the challenges businessmanager will face towards establishment of operations of supply chain and logistics in differentcountries globally( Brandenburg & et.al., 2014 ). This essay will also show relationship betweensupply chain and logistics, framework of supply chain management, different trends in supplychain and logistics, problems which arises when operate globally, cultural effect on supply chainwill be explained in the essay.MAIN BODYSupply chain is a system of people, organizations, information, activities and resourcesinvolved in moving services or products from supplier to customers. Supply chain managementis basically the management of flow of services, goods and all the process which includes rawmaterial transformation into final product.Supply chain management is a representation ofsuppliers efforts for implementing and developing supply chain which are economical andefficient as possible. Everything including product development to production of products toinformation system required for directing these undertakings. So basically it can be said thatsupply chain management is monitoring, controlling, planning, executing supply chain activitieswith a simple objective of building a competitive infrastructure, creating net value,synchronizing demand and supply and measure daily performance. It is heavily drawn from areaslike system engineering, industrial engineering, logistics, operations management, informationtechnology, procurement, marketing and fights for an integrated approach. Supply chain is anorganization network which is involved through downstream and upstream linking, in differentactivities and processes for service and product production for the customers( Fredendall, & Hill,2016 ).Whereas Logistics is simply implementation and organization of complex operations orflow of things between origin point and consumption point for meeting customers andcorporation requirements. Logistics resources can include materials, food, equipment etc. and1

also intangible items like information. Physical item logistics normally include integration ofmaterial handling, information flow, packaging, information flow, transportation, inventory,security and ware housing. Logistics mainly covers transportation, network design and inventorymanagement where transportation includes decision of mode of transportation like rout,schedule,mode of transportation, shipment size and destination address where it has to be send,inventory includes manner in which inventories are management and at last network designincludes location, facilities size, market demand and according to all these points path of productto its destination is designed. It is simply a part of supply chain management that implements,plans efficient and effective storage and flow of services, goods, products, information tocustomers from supplier according to the need of customers. Both of these can be used forbusiness processes for customers through suppliers who provide services, products, informationand many more things that add value of stakeholders and customers. Relationship between supply chain and logisticsHistorically if relationship between supply chain management and logistics is seen thensupply chain management originally originated from development in logistics. Then it wasanalysed that activities involved are analysed, encompassed and are interconnected in bothconcepts( Grant, Wong & Trautrims,2017 ). One of the assumption about both are that SCM isbidirectional flow of information, services, goods and products between companies involved inthe chain whereas logistics controls and implements efficient and effective storage and flow ofinformation, services, goods and products. According to this supply chain management consist ofmore functions than logistics do. It is also said that these both have three types of relationshipfirst id direct relationship where suppliers and customers are directly connected to theorganization. Second is extended supply chain where suppliers supplies their product to anothersupplier and they supply it to organizations and then that product is delivered to initial customerwho deliver it to final customer. Third relationship is ultimate supply chain where many otherthird parties are involved like third party logistic supplier, financial providers, research firm whoresearch about the market and all these parties are directly connected to the organizations( Hazen& et.al., 2014 ).But there are also many contradictions and issues between both. Involvement of supplychain management in defining its structure creates framework inside all the operation taken placeinside logistics. For example: If distant supplier are involved then it increases transportation cost2

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