Supply chain and logistics are two terms that go hand in hand. Apart from being the two most crucial aspects of any business venture, service or otherwise, they are extremely similar in their nature of function. However, while supply chain management covers everything, from the raw material acquisition, its transportation, processing and the final delivery and return of the goods, logistics management is more concerned with the transportation, storage and subsequent reproduction of the desired products.
HOW IS LOGISTICS AND SUPPLY CHAIN LINKED TO EACH OTHER?
Logistics experts will help their client optimize the routes, mode of transportation and even the locations to ensure a high operational efficiency. Rather than just increasing the profit, they are more concerned with the cost- effectiveness of the process.
Why Use Logistics and Supply Chain Management?
Logistics and supply chain management help businesses stay competitive. These practices track and coordinate the efficient and cost-effective movement of goods and services, which is key to an organization’s profitability. The logistical components of a retail supply chain include the following.
INFORMATION: This refers to all the information and data connected with the movement of building materials, finished products and their delivery along with digital tracking of the same.
STORAGE: storing all the components properly is very important for any manufacturing process. If the grade of the materials falls, the final product will not be as satisfactory
PACKAGING: a proper packaging is responsible for the safe delivery of the finished goods without damage and in fact the final thing to ensure customer happiness.
INVENTORY CONTROL: Storage, warehousing and the methods implemented for the maximum benefits of the client as well as the business establishment. The demand and supply calculation are also a crucial part of this process.