Supply Chain Management vs Logistics Management

This presentation explores the difference between logistics and supply chain management while tracking the development of the subject of distribution management, its progression to logistics management and its overall integration leading to the development of the subject of supply chain management. This presentation is aimed at explaining the transition of an organization from one stage of operations management to the next. It also explains the increase in the scope of operations management with the advent of the concept of supply chain management or simply SCM.
This presentation is suited for MBA, PGDM or BBA level students of business management and can be used for class lectures, class notes or class discussions. It will also give an idea to the budding entrepreneurs from taking their businesses from one stage of operations management to the next.

1. Class Notes on SCM v/s Logistics
Management
© Copyright 2015 Anupam Kumar 1
Logistics
•Supply and demand
planning
•Inbound
transportation
•Inventory
management
•Outsourcing
•Fleet management
Distribution
•Warehousing
•Inventory Control
•Order Administration
•Outbound transportation
•Material handling
•Site location analysis
•Packaging
•Data Processing
•Transportation
Supply Chain
Management
•Sourcing &
Procurement
•Manufacturing
•Collaboration &
Coordination
•Integration of supply
& demand
management
Supply Chain Management
v/s
Logistics
Presented by:
-AnupamKumar
Reader
School of Management Sciences, Varanasi
Email: [email protected]
1© Copyright 2013 Anupam Kumar
Logistics V/s SCM
•While logistics function typically looks at the
given task of movement and storage of goods,
–the physical scope of SCM is enlarged to look at
the entire gamut of activities from the vendor to
the customer.
•Supply Chain perspective emphasizes the
stream of activities from raw material to
consumption or
–at least from vendor to customer, since those two
interfaces are within a firm’s scope of influence.
2© Copyright 2013 Anupam Kumar
Supply Chain Management
•Supply Chain management can be viewed as
–a pipeline or conduit
–for efficient and effective
–flow of products / materials, services, information,
and money
–from supplier’s supplier
–through the various intermediate organizations
–to the customer’s customer.
3© Copyright 2013 Anupam Kumar
Logistics V/s SCM
4© Copyright 2013 Anupam Kumar
Logistics V/s SCM
•The concern of logistics have typically been
geared towards
–efficiency to achieve certain goals of service at
minimum cost.
•The SCM concern is wider
–The effectiveness of delivery to the customer
becomes the primary focus,
–Recognizing the changing nature of demand and
technologies.
5© Copyright 2013 Anupam Kumar
Logistics V/s SCM
6© Copyright 2013 Anupam Kumar

2. Class Notes on SCM v/s Logistics
Management
© Copyright 2015 Anupam Kumar 2
Wider Scope of SCM
•From logistics to supply chain management
there are various stages of evolution that has
happened.
•The financial system is explicitly added to the
scope of analysis.
•This facilitates the tying up of different
activities across the entities.
7© Copyright 2013 Anupam Kumar
Wider Scope of SCM
•In addition to the physical goods considered
within the scope of logistics, in SCM …
•Services are added as part of the value
delivered, including
–Installation,
–providing information about
•product features and
•availability,
–after sales service, etc..
8© Copyright 2013 Anupam Kumar
Role of Logistics in SCM
Logistics
•Supply and demand
planning
•Inbound
transportation
•Inventory
management
•Outsourcing
•Fleet management
Distribution
•Warehousing
•Inventory Control
•Order Administration
•Outbound transportation
•Material handling
•Site location analysis
•Packaging
•Data Processing
•Transportation
Supply Chain
Management
•Sourcing &
Procurement
•Manufacturing
•Collaboration &
Coordination
•Integration of supply
& demand
management
9© Copyright 2013 Anupam Kumar
Role of Logistics in SCM
•Supply chain refers to
–the way material flows
–through different
organizations
–starting with raw
materials and ending
with the finished
products
–delivered to the ultimate
consumer.
•Logistics management
involves
–managing the movement
of raw materials and
components
•from source of supply to
manufacturing plant and
–the movement of
finished goods
•from the manufacturing
plants to warehouses, or
retailers or to the final
customer.
10© Copyright 2013 Anupam Kumar
Role of Logistics in Supply Chain
•For a supply chain to be effective, the
management of organizations should be able
to meet the following logistics goals.
–Increased efficiency
–Improved customer service
–Increased sales
–Improved relationships.
11© Copyright 2013 Anupam Kumar
Bibliography
•Websites:
–http://www.logisticslist.com/3pl-
definition.html
–http://logistics.about.com/od/strategicsup
plychain/a/select_3PL.htm
•For images and clip-arts:
–www.almc.army.mil
–www.collegelap.com
–khairul-anwar.com
–freightfilter.com
–Vivekvivacious.blogspot.com
–www.123rf.com
–accessqueens.com
–www.shipmyride.com
•Books:
–Agrawal, D.K., (2010) “Supply Chain
Management: Strategy, Cases and Best
Practices”, New Delhi: Macmillan
Publishers.
–Ballou, R.H. and Srivastava, S.K., (2007)
Fifth Edition, New Delhi: Dorling Kindersley
(I) Pvt. Ltd.
–Bhatt, K.S., (2008), “Logistics
Management”, Second Edition, New Delhi:
Himalaya Publishing House
–Ismail, R., (2008), “Logistics Management”,
New Delhi: Excel Books
–Kachru, U., (2009), “Exploring the Supply
Chain: Theory and Practice”, New Delhi:
Excel Books
–Raghuram, G. and Rangaraj(Eds.), (2000)
N., “Logistics and Supply Chain
Management: Cases and Concepts”,
Chennai: Macmillan Publishers, 2010
reprint.
–Sople, V.V., (2012), “Supply Chain
Management”, New Delhi: Dorling
Kindersley (I) Pvt. Ltd.
12© Copyright 2013 Anupam Kumar

3. Class Notes on SCM v/s Logistics
Management
© Copyright 2015 Anupam Kumar 3
For further details / comments…
Contact:
-AnupamKumar
Consultant
Contact No.: [phone]
Email: [email protected]
13© Copyright 2013 Anupam Kumar © Copyright 2013 Anupam Kumar 14
Logistics
•Supply and demand
planning
•Inbound transportation
•Inventory management
•Outsourcing
•Fleet management
Distribution
•Warehousing
•Inventory Control
•Order Administration
•Outbound transportation
•Material handling
•Site location analysis
•Packaging
•Data Processing
•Transportation
Supply Chain
Management
•Sourcing &
Procurement
•Manufacturing
•Collaboration &
Coordination
•Integration of supply &
demand management
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