Introduction to Logistics and Supply Chain Management

The term “Supply Chain Management” was invented in 1982 by Keith Oliver of Booz, Allen and Hamilton Inc. Nevertheless, discipline and practice have been in reality for centuries. The terms Logistics and Supply Chain Management are these days interchangeably, but there is a suitable difference that occurs between these two.

Logistics has a military origin and used to link with the movement of troops and their supplies on the battleground. But like so many other technologies, it entered into the business lexicon slowly and has now converted synonymous with the set of activities ranging from procurement of raw constituents to the delivery of the final polished good to the end consumer.

In a typical business situation, many administrations work in a cycle to get the closing product in the hand of the end customer. The supply chain is a system of these administrations that blend to make the last consignment effective.


Logistics is frequently appreciated as a differentiator in terms of the end lowest line of a distinctive organization such as allowing either a lesser cost or providing higher worth. While a lesser cost is generally a one-time feel decent feature and has been the old emphasis area in logistics but the advanced value comes into the representation much later and maybe palpable or incorporeal in a good’s early phases. An organization like Zappos may look expensively at an initial look on the behalf of astonishing purchaser service due to appreciable policies that are a value which more than offsets a little higher price.

Logistics can be realized as a connection between the industrial and advertising operations of a corporation. The outdated administrations used to think of them distinctly, but there is a certain value accumulation in mixing these two, due to the interdependence and response network.

Logistics cover the following broad functional areas:

Network design
Inventory management

Network Design:

Industrial plants, granaries, stores are all services which form key components in the network design.


The price and constancy required out of the transport network which controls the type and method of the undertaking of goods.

Inventory management:

It is the management of non-capitalized properties, or inventory, and stock things. As a constituent of supply chain administration, inventory management manages the flow of things from producers to granaries and from these facilities to point of sale.

Basic concepts of Logistics and SCM

The basic and important terms that are related to logistics and SCM are described below along with their details.
Inventory Planning

Organizations need to diminish the inventory stages due to its nearly linear association with the price. Thus far if the request is predicted precisely, there would preferably be no need for inventory and the things will move faultlessly from warehouses to clients.


The kind of transportation hired by an association is a planned choice, founded on the obligatory level of danger experience, customer service outlines, the physical area enclosed etc. Truck consignments take more time for delivery as compared to air transport but demand conservation of higher inventory levels. Transportation helps the drive of not just product undertaking but storing as well. Time spent on delivery means saved time for warehousing, and many times the price to relieve and reload consignments can be bigger than the cost of allowing the things to stay in the transportation cars itself.


Flipkart has eKart for its logistical processes and warehousing, while lesser e-commerce group of actors usually subcontract their processes to particular logistics players such as BlueDart and DHL.


It is the back-end structure for storing things. It is grounded on the wants of the organization, it can be in-house or subcontracted.

Functions of warehousing:

Main functions of a warehouse are product undertaking and storage. Actions such as offloading of the things approaching from the dealers, the middle wrapping and deliver to other destinations such as customers that are held in the warehouse. Likewise, they can also serve as a storing house for handing peak customer request to evade stock out of things, and performances as a buffer between the starting point as manufacturing plant and ending point as a retail outlet.

Green Supply Chain Management

Green is the new method to go about belongings, and the fairy-tale is that incomes and situation cannot go hand in hand is vanishing rapidly. 

Lean Practices

Assurance to lean practices is a promise to do away with ineptitudes in the arrangement to decrease wastes and have a negligible influence on the atmosphere.
The focus on constant product currents, standardization inside the business group or in manufacturing industries and a bigger integration between manufacturers and customers, all these factors have donated to well-organized supply chains with slowly declining surplus levels.

Successful Supply Chain Practices

Statistics are frequently the important differentiator when it comes to fruitful supply chain practices, and the administrations that share statistics founded on the foundation of faith and continuing business feasibility will regularly have a conclusive competitive benefit over those organizations that do not share dangerous evidence upstream and downstream. The finest part is everyone charming such as organizations as well as consumers.

Supply Chain Management Courses and institutions
Several top global schools like MIT, Purdue and Rotterdam have devoted courses running from a long spring of time. Certifications like APICS, ISM and IOSM can also show valuable if one is controlled by time and money. In the Republic of India, IIM Bangalore proposes focused courses for academic and practical study in the field. Institutions like IIM C, XLRI, NITIE and IIMM (Indian Institute of Materials Management) also offer related courses for folks geared towards SCM.

Supply Chain Management Career

Conferring to PayScale, the average salary of a Supply Chain Manager in India is about 8.3 LPA. Few of the businesses that are in constant need of SCM professionals are industrial, automotive, trade, construction and services. SCM as a career choice provides you with sufficient chances to tackle stimulating glitches while also giving you insights about the occupation that very few roles can afford. If an individual aspires to be a worldwide inhabitant in a world that is becoming progressively smaller, it can give his or her occupation a big improvement.

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