Logistics_Management - During last two decades the...

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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, implements and reverse flow and storage of goods, services, and related information between the point of origin and consumption. Logistics concentrates on coordination among business functions within and through companies, such as production, finance and marketing. In addition, according to Meredith & Shafer(2010), the SCM involves in managing the whole chain from receiving the end-customers' order to providing raw materials. SCM is not only limited to managing the links that connect with one's own firm, but all links within the chain. They also argue that SCM can also be regarded as a process with other managerial functions, such as quality and inventory management, lean production and enterprise resource planning, but it is involved in even more extensive scope than that. In addition, Mentzer, J., Stank, T., & Esper, T.(2008) also states that SCM make corporations can actively plan and collaborate through the distributed supply chain and assure that all parities know objectives, timetable and expedites which can lead companies and their suppliers produce and deliver goods with minimal lead-time and costs. Furthermore, they also maintain that Logistics plays an important part in supply chain processes and also involves in sourcing and producing. Therefore, it is concluded that they are not completely the same terms concerned with the scope.
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