Logistics – An Integral Component Of Supply Chain Management - Transglobe Academy

Logistics – An Integral Component of Supply Chain Management

Supply chain management is the broad term that encompasses, planning, design, control, and implementation of all business processes related to procurement, manufacturing, distribution and sales order fulfillment functions of a business. All these activities are co-coordinated by the supply chain professionals to move raw materials and finished goods to all distant locations across the globe and involve multiple networks of vendors and service providers. All these activities are as difficult as it sounds and for an individual to get into this field, he needs kosher logistics training to get into it and excel in it.

Logistics not only refers to the management of the flow of raw materials, goods and supplies but also the involving information, data, and documentation between two entities or points. All these factors make logistics the backbone of supply chains.

The goods glide through a network of transportation by road, rail, air or ship and make stops at intermediary warehouses before moving to the forward locations. The entire activity involves agents, freight forwarders, Packers, customs department, distributors, logistics service providers, and multi-tier suppliers. Ideal supply chain management is enabled by excellent visibility and proper control over the logistics process.

In many cases, the supply chain is confused as logistics and vice versa. Though the logistics and supply chain are linked, they are not the same. Logistics is a sub-element and an extension of the supply chain. In an organization it is the supply chain department that designs the plan that would detail the plan and strategize the procurement strategy, manufacturing location selection, design and develop distribution network and strategy for finished goods.

Supply Chain Management strategy or SCM will define the process, selection of vendors, procurement strategy and the mode of order fulfillment coupled with cycle time and lead time to supply to the production floor. It controls and monitors the flow of goods from point of origin to the plant for production up to the point of delivery.

Logistics plays important role in the overall functioning of a manufacturing business, from procurement of raw material from the supplier to the point of production and finally taking the finished goods to the stores and to the consumers. Logistics is the process that enables business and the glitch-free execution of it. The logistics training that we offer at Transglobe will equip and enable you to have a successful career in this lucrative industry.

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