Logistics and Supply Chain Management: Objectives and SCOR

This report delves into the core objectives of logistics and the application of the SCOR (Supply Chain Operations Reference) model. It begins by defining logistics as the process of planning and executing the transportation and storage of goods from production to consumption, emphasizing the goal of meeting customer requirements efficiently. The report outlines key objectives of a successful logistics strategy, including increasing efficiency through cost-effective transportation, improving customer service by ensuring timely and condition-appropriate deliveries and managing returns effectively, boosting revenues by leveraging service improvements as marketing advantages, and fostering strong relationships with carriers. The report then provides a detailed explanation of the SCOR model, which is a decision-making framework for supply chain management. The SCOR model includes five core management processes: Plan, Source, Make, Deliver, and Return. The report explains each of these processes, highlighting their importance in managing demand and supply, procuring goods, transforming products, distributing products to customers, and handling product returns, respectively. In conclusion, the report highlights the importance of understanding the objectives of logistics and utilizing effective methodologies like the SCOR model to strategize and optimize logistics operations for businesses.

Logistics and Supply
Chain Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Objectives of logistics............................................................................................................3
TASK 2............................................................................................................................................4
SCOR (Supply Chain Operations Reference Model).............................................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................4

INTRODUCTION
Logistic refers to the process in which planning and exit cute thing of transportation and
storage of good from the place where it is produced to the place where it is to be consumed takes
place (Nejma and Cherkaoui, 2020). The goal of logistic this to meet the customer requirements
in a cost-effective manner within a given time period. In the above discussion the major
objectives of logistics strategy as well as the methodology of SCOR (Supply Chain Operations
Reference Model) is described.
TASK 1
Objectives of logistics
There are a number of reasons due to which every company requires an efficient logistics
strategy some of the major objectives of a logistics strategy:
Increases efficiency: It is important that a company increases its efficiency by cost-effective
transportation system to reduce its overheads and cost per order processing system. Companies
often establish a two-way relationship with their carriers in order to frequently share best
practices, opportunities and issues.
Improves customer service: Fulfilment of operations both inbound and outbound transportation
is the basic key to deliver all the promises made to a customer by getting the goods shipped to
them in good condition and stipulated time period. In order to do so other than providing the
goods that time companies also focus on processing the returns from customers. it is often seen
that the cost of returns is higher than the cost of all the faces. The cost of the returns there is no
cost to follow the system, indirect in direct labour, loss of shipping costs and also loss of
potential consumers. Important for a business to strategize in pound as well as outbound logistic
in such a way that the customers are provided the first priority.
Increases revenues: there are number of opportunities to improve service which girl then turn
into marketing advantage for a number of companies. Bundle of volumes with carriers help in
fulfilling the demands of market. As the companies these days are leaner it is important to meet
the sales goals (Kim and et. al., 2020). Retail stores can easily substitute product from any other
company if the goods do not reach to them on time therefore it becomes essential for firms to
strategize logistics plan to meet their sales goals.

Improves relationships: Logistic helps in building relationships with the carriers would help in
transportation of the products of a company. These days transportation managers or companies
are called as logistics partners which makes them feel a sense of belongingness towards firm.
There for a company stays involved with the process, verifies results and reports, keep the
options open and also treat their transporters as important partners for their businesses.
TASK 2
SCOR (Supply Chain Operations Reference Model)
SCOR is an effective model for decision making in supply chain management. It was
developed by 70 members of Supply Chain Council (Kumar, Singh and Modgil, 2020).
SCOR Model: MANAGEMENT PROCESS
There are five kinds of different process modelling building blocks in this model which
are mentioned below:
Plan: This process relates to demand and supply tomorrow. In this standards are established to
improve as well as measures supply chain efficiency. Through This route company can spell
compliance, transportation, invention, assets and a number of other things.
Source: In this step the processes to procure goods and services which are to meet the demand of
market are included. It includes material acquisition as well as sourcing of infrastructure. All
these are examined in order to define how to manage inventory, supplier network, performance
of suppliers as well as agreements.
Make: This is a process where the product is transformed into final state in order to meet the
customer requirements. This is an important process for mass manufacturing units. It helps in
answering a number of questions such as make to order, make to stock, engineer to order and so
on. This includes all the activities of production, packaging and releasing of product.
Deliver: This involves all the process in which the product goes out from warehouse and is
distributed or transported. In this step customer service and overall management of a product
life-cycle, finished inventory, importing and exporting requirements are included.
Return: This is the final step which focuses on returning the product from customer with the
manufacturers if customer is not satisfied with the products. It is important that organizations are
prepared to handle retail due to any defect in products. There are a number of business rules,
return of inventory and regulatory laws included in this final step.

CONCLUSION
The above report clearly explains the objectives of logistics business. There are a number of
different methods through which company can generate a cost-effective logistic plan. SCOR is
an effective methodology to strategize logistics for a business which can be understood through
the help of this report.

REFERENCES
Kumar, A., Singh, R.K. and Modgil, S., 2020. Exploring the relationship between ICT, SCM
practices and organizational performance in agri-food supply chain. Benchmarking:
An International Journal.
Kim, N.Y. and et. al., 2020. Development of a risk scoring system for predicting acute kidney
injury after minimally invasive partial and radical nephrectomy: a retrospective
study. Surgical Endoscopy, pp.1-10.
Nejma, M. and Cherkaoui, A., 2020, January. Enabling multi-tier collaboration between supply
chain dyads: a conceptual modelling framework. In Supply Chain Forum: An
International Journal (Vol. 21, No. 1, pp. 35-52). Taylor & Francis.