Logistics focuses on the movement and storage of items in the supply chain. Supply chain management (SCM) is more comprehensive and encompasses all coordination between partners that play a role in this network, including sourcing, manufacturing, transportation, warehousing, and sales. Logistics is primarily concerned with organizing efficient distribution, shipping and storage and preparation of orders. It comes from the “maréchal des logists”, a military term coined by Napoleon to refer to his army.
Literally, this is the person who organizes the “lodging” in the military, a marshal of lodgings. As Napoleon once said: “l'intendance suivra”, which means “don't bother”, logistics specialists will organize food and accommodation backstage. Under his orders, an asset operations manager responsible for operating plants and warehouses and the supply chain manager, who organizes and plans the movement of goods between all entities in the supply network (chain). But this only happens if all members of the chain have access to all relevant market data and trading information.
A supply chain is involved in the processing or use of these materials or even in providing services to customers who use these materials. A supply chain is a network of businesses and activities that carries a product from suppliers of raw materials to end consumers. Strangely enough, quite often it is responsible for logistics operations, for organizing warehousing and shipping. Improving the supply chain can also involve coordinating the supply chain or optimizing logistics and transportation activities for maximum efficiency.
Typically, a company will participate in a supply chain business process at the point where it can employ its specific functional area of expertise. A supply chain can be seen as a system that connects the value chains of companies within that system. A supply chain, which depends heavily on information technology, logistics and transportation, can include numerous different companies that form the different links in the supply chain, or a single company can oversee most of the supply chain and the logistics of its products. Operations and supply chain management (OSCM) includes a broad area that encompasses both the manufacturing and service industries, including the functions of sourcing, materials management, operations planning, distribution, logistics, retail, demand forecasting, order fulfillment, and more.
Supply chain management refers to the process of monitoring and optimizing the overall supply chain network, from suppliers of raw materials to retailers of finished products. Healthcare, banking, education, government, military, consulting, airlines, entertainment, not-for-profit organizations, retail, energy, and, of course, the third-party cargo transportation and logistics industry. By definition, logistics refers to the processes of acquiring, transporting, and storing resources along the supply chain and logistics. The objective of supply chain management is to make the supply chain process as efficient as possible by improving product and information flows between participating companies.
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