Logistics & Supply Chain Management 101: Everything You Need To Know

Logistics management has become a staple of industries in modern times. It has become the need of the hour for these organisations to ensure that the procedures utilised in this form of management are carried out to the T.

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To the uninformed eye, logistics and supply chain management might sound like two completely different terminologies. It’s an understandable assumption to make, but we’re here to clear any doubts that people might have about these two functions. After all, there’s a reason why institutes like ILAM provide a combined course in Logistics & Supply Chain Management to help aspirants pave their way to a better future.

So, the first thing that we need to clear out are the exact definitions of both logistics management and supply chain management.

Logistics Management

“The line between disorder and order lies in logistics.” – Sun Tzu

What does one mean when they say the word ‘logistics?’ In layman’s terms, logistics is all about getting the desired product to the right place at the appropriate time, keeping in mind that the condition of the product is prim and proper while the quantity supplied is as per the consumer’s need. It involves managing the process of transport flow and the storage of goods & services from its origin to its consumption. It includes both inbound & outbound movements of these aforementioned offerings.

Logistics management has become a staple of industries in modern times. It has become the need of the hour for these organisations to ensure that the procedures utilised in this form of management are carried out to the T. To put this statement into context, here are the processes that one needs to account for in logistics management.

• Distribution: The exact customer requirement must be gauged, and the delivery channels need to be optimised for the same.
• Maintenance: The products that have been gathered and stored need to be maintained at regular intervals to prevent any logistical problems from surfacing.
• Inventory Management: The inventory needs to be accounted for at all times through regular checks to ensure that products don’t go missing at any given interval.

Supply Chain Management

It’s not the organisations that are competing. It’s the supply chains that are competing.” – Wael Safwat

In the simplest terms, the network that exists between the company and its suppliers for the procurement of inventory is labelled as a supply chain. Organisations, people, activities, information, and resources are all a part of the supply chain, as long as they contribute to delivering a product – or even a service – to the end user.

Supply Chain Management (SCM) involves the overseeing of materials, information, and finances as they move in an organised manner from the supplier, to the manufacturer, to the wholesaler, to the retailer, and – finally – to the consumer.

SCM involves the coordination and integration of these flows both within and among companies, with the overarching objective of making products and services available as and when required.

Supply Chain Management can be broadly divided into 3 main flows:

• Product Flow
• Information Flow
• Finances Flow

So, keeping this in mind, it doesn’t take an expert to state that supply chain management is essential to guarantee that processes are carried out smoothly and efficiently. By streamlining these activities and making sure that no problems arise in the supply side of a business, businesses attain a much-needed competitive edge in the industry.

Logistics & Supply Chain Management

The clarification of both terminologies should put one statement into context – logistics and supply chain are two sides of the same coin. No matter how hard one might try, one can’t practice one function without taking the other into account. Without a supply chain, a business’ logistics will be convoluted from the get-go. Conversely, without logistics management, the work that a company puts into setting up a supply chain will go to waste.

The requirement for logistics & supply chain management professionals has become all the more palpable in the industries of today, and new-age institutes are providing future-ready education to accommodate the same. One such institute is ILAM that offers a BBA in Logistics & Supply Chain Management. Through these courses, individual will gain an in-depth knowledge of the processes involved in logistics and supply chain management, providing them with the means to become an eminent player in this field.