Understanding Logistics Management and Supply Chain Management

Pages: 3 (1758 words) Published: October 28, 2014
Discuss this proposition. Do the terms, logistics management and supply chain management have the same meaning in operations Briefly explain how logistics management adds value to the operations of a manufacturing or service organisation. Introduction Logistics management and supply chain management are similar terms in business logistics, but these two terms are not the same (Murphy and Wood 2011, p22). In different decades, scholars made use of their knowledge and experience to define logistics management and supply chain management (SCM). In my opinion, currently logistics management is part of the supply chain management. This minor difference between the two can be supported by scholars in the industry. In this essay, we will discuss the definition logistics management and supply chain management in terms of operations and their relationships. In addition, we will discuss how logistics management adds value to manufacturing or service organisation. Discussion on supply chain management According to Ballou (2007, p.338), Supply Chain Management (SCM) encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all Logistics Management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, Supply Chain Management integrates supply and demand management within and across companies. SCM have three dimensions, which are (1) activity and process administration, (2) inter-functional coordination, and (3) inter-organizational coordination. Ballou (2007, p.340) stated that SCM is concerned with realizing the opportunities from integrated management of product flow processes across functions and between channel members. Mentzer et al (2001, p.3) defined supply chain as a set of three or more entities (organizations or individuals) directly involved in the upstream and downstream...
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