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Logistics & SCM - Coggle Diagram
Logistics & SCM
Distinction between Logistics & SCM
Logistics
process of
Planning
Implementing
Controlling
Effective Transportation
Storage of Goods
Generally flow of goods after consumption
SCM
Purpose
Create Value
Efficiency
Satisfy Customers
Management
Relationships
Business units
Purchasing
Production Facilities
Marketing
Other Related Systems
Material Suppliers
Independent Organisations
flow of
Materials
Information
Resources
Perspectives
Traditionist
SCM is part of Logistics
Unionist
Logistics is part of SCM
Relabelling
Logistics has been labelled as SCM
Intersectionist
Overlap between Logistics & SCM
Consists parts that are separate and distinct
Six Important Developments
Reduced Transport Intensity of Freight
Reduce High Volume / Low Value Freight
Customer Driven Production
Minimise Environmental Footprint
Falling Product Prices
Cost Savings
Product Design & Packaging Optimization
Storage
Movement of Inventory
Deregulation of Transport
Increased Contestability
Promotes Competitive Pricing and Service
Lower Prices
Improved Services
Modes of Transport
Air
Road
Sea
Rail
Pipeline
Internet
Productivity Improvements
Containers
Efficient Space Utilization
Cargo Handling
Reduced Cost of Transportation
Technology
Barcoding
Online Tracking
RFID
Artificial Intelligence
Automation
Emphasis on Inventory Reduction
Vital Role for Various functions
Transportation
Warehousing
Marketing
Purchasing
Increased Market Competition
Increased Customer Requirements
Inventory Management
Cost Savings
Changes in company structure
Less Vertically Integrated
Better Decision Making
Improve Communication
Empower Employees
More Responsive
Outsourcing
Cross-Functional Teams
Process Improvement
Problem Solving
Promotes innovations in Idea Generation
Evolution of Logistics & SCM
SCM
Service Criteria becoming the norm
After Sales Service
Delivery add-ons
gains competitive edge through
Adopting best in-class logistics practices
end-to-end supply chain view
Logistics
Emphasis on Cost Reduction
Best Practices for Cost-Effectiveness
JIT
Lean Practices
Adopting Digital Advancement Tools
Blockchain
IoT
Warehouse Management Systems
Streamlines Processes
Improves Decision Making
Reliabilty
Accuracy