Santosh Nambiar Jan 25, 2024
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Why Choose A Career In Logistics And Supply Chain Management

Logistics is the way of transporting materials, goods, or services from one place to another. Supply chain management is logistics on a much larger scale. It includes logistics sourcing of raw materials, acquisition of customer requirements, and many more. Supply chain management also handles things like inventory control, warehousing logistics, and transportation logistics.

Supply chain management and logistics are very similar but have some differences. They both work together to accomplish tasks in a company or organisation. Although many people may sometimes use these terms interchangeably, they represent different aspects of the business world due to their distinct responsibilities within an economy.

The supply chain management and logistics industry also have long-term opportunities for growth with room for advancement. This blog will further elaborate on why choosing a career path in logistics and supply chain management is worthwhile. 

What Is Supply Chain Management?

Supply chain management is managing a company's supply chain activities to gain more value and create competitive advantages. It involves streamlining all business flow from raw materials to final products, aiming for customer satisfaction and success.

SCM is a set of practices where companies can cut excess costs and deliver products faster to the consumer. It is done by maintaining tighter control over internal inventories, production, distribution, sales and inventory from company vendors.

In supply chain management, five components make up the core concept. These traditional systems include:

  • Planning: When the supply chain is established, companies must measure whether their current system meets customer demand and delivers value to customers. This planning requires determining metrics that determine if the supply chain is efficient, effective and provides value for company goals.
  • Sourcing: To create a product, suppliers need to be chosen, and processes must monitor them. Sourcing includes ordering the supply necessary for production, receiving it in time at their warehouse, managing inventory levels once received, and authorising supplier payments when due.
  • Manufacturing: Requires you to execute the manufacturing by accepting raw materials, producing the products, checking their quality and packaging it for delivery.
  • Delivery and Logistics: It involves you coordinating the orders, scheduling deliveries and forwarding the loads. In addition, customer invoice and payment receivable is included in this concept.
  • Returning: The process of creating a system or procedure to reclaim defective, excess, or unneeded items.

Difference Between Logistics and Supply Chain Management

Logistics and supply chain are merely co-relating concepts in the bigger picture. However, in technical terms, logistics is a small section of supply chain management, where it combines the flow of goods and services.

The significant difference between them is that logistics is the process of integration and management involving the storage of goods in reorganisation. In contrast, supply chain management is the process of coordination and management of goods. More specifically, it consists of the movement of supply chains in an organisation.

The difference between logistics and supply chain management is given in the table below:

  • The planning, implementation, and coordination of the details of a business comprises logistics. It deals with procurement, supply, and maintenance of equipment.
  • The process begins with the supplier of materials or components, extends through a manufacturing process to the distributor and retailer, and ends in the consumer’s hands.
  • Inbound and Outbound Transportation
  • Warehousing
  • Reverse Logistics (Returns)
  • Protective Packaging
  • Fulfilment
  • The plan or strategy
  • Sourcing
  • Manufacturing
  • Delivery and logistics
  • The return system
  • The goal of logistics is to offer just-in-time delivery simply for the sake of customer satisfaction.
  • The purpose of supply chain management is to optimise a supply chain for the sake of competitive advantage, as in the most efficient and cost-effective means available to those engaged within it.
  • Customer Satisfaction
  • Competitive Advantage
Involvement Bodies
  • One organization
  • Multiple organisations with coordination of suppliers, intermediaries, distributors, and customers

What Are The Benefits Of Studying Supply Chain Management?

Supply chain management is a new concept that is packed with a series of related activities. So why is Supply Chain A Great Career Path is answered through the given below benefits:

  • Masters The Main Objectives: Achieve success in the supply chain field by fulfilling customer demands, improving an organisation's responsiveness, creating value for customers and encouraging financial success. 
  • Improve Profitability: The field of supply chain management requires you to contribute more than just cost efficiencies. You will need to maintain inventory levels and decrease labour expenses while finding ways to increase sales, infiltrate new markets, and differentiate itself from competitors.
  • Understanding Major Challenges And Trends: Supply chain and logistics management is a great field to get into: you will learn how to navigate industry trends, forecast the company's financial outlook, and provide what clients want.
  • Growing Employment Opportunities: There are many employment possibilities for those with a supply chain management certification. You can work as an analyst, storage and distribution manager, purchasing manager, operations manager, supply chain manager, business process engineer and more.

What Is Logistics Management?

Logistics management is a crucial part of supply chain management, helping businesses manage their movement and storage procedures to meet customer demands. Logistical processes reduce expenses and enhance customer service through information planning, control implementation, and auditing.

You can simplify logistics management to the goal of moving products and resources efficiently. It is essential because customers expect faster, more efficient service, ensuring they get what they need when it matters most.

Logistics management is an old concept that affects the distribution of goods and services. The modern era crafted logistics into a complex term that complements supply chain management. It is now termed the process of managing resource acquisitions, storage and transportation to its final destination.

Why Should You Study Logistics Management?

The benefits of studying logistics management are given below:

  • Stable Industry: The logistics industry is growing by leaps and bounds as the world's economy continues to grow. Warehouse space has now become a commodity by itself. It indicates positive outlooks for those working within this industry or planning to work towards logistics careers.
  • Plenty Of Job Opportunities: Advancement prospects are always available in the logistics industry as companies invest in their employees. Hard-working and innovative individuals will be rewarded for their efforts, encouraging you to work smarter and more efficiently.
  • Wide Networking: People who work in logistics meet a wide range of people across the world. These new relationships open up opportunities for networking at all levels, which is helpful because international business professionals need to communicate with diverse types of people within an organization or through conducting transactions globally.

To Sum Up

Companies that want to stay competitive and profitable in the marketplace need a robust supply chain management system. Supply chain management is an important field that ensures the flow of goods and services from their origin to needed. Logistics involves coordinating shipments, space in warehouses, transportation routes, etc. To choose logistics and supply chain management courses, you need to be organized with strong interpersonal skills like effective communication and negotiation abilities. You also need analytical thinking skills for problem-solving, which can help you deal with unexpected circumstances.

Logistics and Warehouse Management Trainer

Mr Santhosh Nambiar is a highly motivated, qualified, and dedicated Logistics & Warehouse Professional. He has extensive experience in Logistics, Inventory Management, Distribution & Demand Planning. 

Mr Santhosh provides excellent customer service and operations support through his active listening and problem-solving skills. A flexible and creative trainer, Mr Santhosh can read the room and adjust his training delivery methods to meet the needs of the learners. Highly energetic trainer and fast-paced trainer, he enjoys the challenges that come up with building a vibrant and dynamic workforce.