Premium Essay

Logistics and Supply Chain Management

In: Business and Management

Submitted By zhajy081
Words 1177
Pages 5
Topic: Do the terms, ‘logistics management’ and ‘supply chain management’ have the same meaning in operations and why logistics management might be of strategic importance to a manufacturing or service organisation.

During last two decades, the importance of logistics has been noticed around the world. In global markets, the effects and further developments of logistics and supply chain management for corporate success has increased significantly that result in a large amount of companies have taken actual benefits in logistics, such as reducing costs, enhancing customers' satisfaction and increasing sales. However, some people are confused with the relationship between logistics and supply chain management, what logistics or logistics management is and what supply chain management is, weather or not that they are the same meaning in operations. Therefore, this essay will argue that logistics management and supply chain management are not exactly the same in operations because of the scope where utilized and some specific activities are similar, but some are different. In the end, this essay will also talk about the reasons for logistics management is a important strategy to manufacturing or service companies.

The first argument is that they are not completely the same terms in operations because of the scope where utilized are different. Firstly, according to Murphy & Wood (2008), CSCMP states that the supply chain management includes all activities about planning and management, such as procurement and sourcing, conservation and all logistics management activities. It is vital to notice that it also collaborates and coordinates with channel partners, such as suppliers, third-party service providers and customers. However, it indicates that logistics is that a section of supply chain management that performed in order to meet customers' demands, such as plans,...

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