In the previous post, we discussed SCM (Supply Chain Management), its definition, objectives, and core ideas. Now we will talk about logistics management. One of the best providers of this type of service is Orient Freight. You can find more information about their services here.
Defining Logistics Management
Logistics is technically defined as the management of the flow of things between the point of origin to the point of destination or consumption. It manages the materials such as food, animals, equipments, and liquids. But not only that, it also handles the time and information about the materials to be transported.
Phases of Logistics
The process of transporting the materials in the SCM has three major phases:
Inbound – The first phase of logistics management wherein the materials are transported from the point of origin to the point of production. Others call this phase as the physical supply or the upstream stage.
Outbound- After the materials have been successfully transported to the point of production, the finished goods are now ready for distribution. That part of moving finished goods from point of production to the point of consumption is called outbound logistics. Others have also called it as the upstream stage.
Reverse- The third phase of logistics management is the movement of the goods and products to be returned from the point of consumption to point of production due to damages, expiration, and unsold.
SCM needs Logistics
SCM will not work without logistics management because all the materials in SCM will be transported by using logistics solutions. SCM is the framework responsible for planning, implementing, and controlling the efficient and effective flow of materials or goods while logistics is responsible for the movement of those materials.
I hope this brief explanation on what logistics management really meant have made a clear idea that SCM is different from logistics management. That the whole process is SCM, and logistics management is just part of the system.
Defining Logistics Management
Logistics is technically defined as the management of the flow of things between the point of origin to the point of destination or consumption. It manages the materials such as food, animals, equipments, and liquids. But not only that, it also handles the time and information about the materials to be transported.
Phases of Logistics
The process of transporting the materials in the SCM has three major phases:
Inbound – The first phase of logistics management wherein the materials are transported from the point of origin to the point of production. Others call this phase as the physical supply or the upstream stage.
Outbound- After the materials have been successfully transported to the point of production, the finished goods are now ready for distribution. That part of moving finished goods from point of production to the point of consumption is called outbound logistics. Others have also called it as the upstream stage.
Reverse- The third phase of logistics management is the movement of the goods and products to be returned from the point of consumption to point of production due to damages, expiration, and unsold.
SCM needs Logistics
SCM will not work without logistics management because all the materials in SCM will be transported by using logistics solutions. SCM is the framework responsible for planning, implementing, and controlling the efficient and effective flow of materials or goods while logistics is responsible for the movement of those materials.
I hope this brief explanation on what logistics management really meant have made a clear idea that SCM is different from logistics management. That the whole process is SCM, and logistics management is just part of the system.