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Definition of Supply Chain Management & Logistics

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Definition of Supply Chain Management & Logistics Wil Lim Introduction Supply chain management and logistics is rapidly becoming the most important aspect of business success. Those who manage their supply chain and logistics effectively will flourish and prosper, however those who do not may not be around in a few years. Just what is the definition of supply chain management and logistics? Often than not, supply chain management has been confused with the term 'logistics' and 'procurement'. The term supply chain management has been around for the past twenty years and has had a major influence on today's business societies. The term logistics originated seventy years ago from the French word "logistique", (Wilton, 2005) which is derived from the word "loger" meaning quartering troops. However, in today's age, these terms are often used by various industries, associations and academics, each with their own definition of the terms. These terms are often derived from the perspectives of the author's background, skill, exposure and experience to the industry. Supply chain professionals offer different definitions that rightly evolve over time. With the magnitude of different definitions of these two terms, one poses the question on what the proper definition of supply chain management and logistics. Evolution of Logistics Surely, the definition of logistics has evolved during the seventy years from its origin. Originally, "logistique" is defined as quartering troops or rather to furnish troops with shelter or entertainment. (Wilton, 2005) Today, the term logistic does not just mean to furnish troops with shelter or entertainment, this term is widely used in many facets of business, military, and social wise. ...read more.


Logistics is no longer defined as the physical means of transportation. Logistics is now clearly defined as a process to effectively and efficiently achieve the means of transportation of goods, materials or personnel. The only major difference obviously would be the areas in which logistics is defined. Muller defines logistics as a process to achieve the means of deploying troops and equipment. Jenkins defines logistics as a process to achieve the means of transporting goods from manufacturer to consumer. CSCMP also defines logistics as a "process" to achieve the movement of goods or services from the point of origin to the point of consumption, therefore meaning the consumer. Ideally, the definition of logistics has now evolved into a process of achieving efficient and effective transportation. Transportation is the largest part of logistics. Supply Chain Management Supply chain management is one of the most important strategic aspects of any business enterprises. Yet what eludes most of us is the actual meaning of supply chain management. Often its definition has been confused with the term logistics. CSCMP defines supply chain as "as the material and informational interchanges in the logistical process stretching from acquisition of raw materials to delivery of finished products to the end user." (Logistics Today's 10 Best Supply Chains et al, 2003) Logically, logistics is part of a supply chain. So what is the definition of supply chain management? Supply Chain Management Defined There has been hundreds and hundreds of various articles explaining what supply chain management is and the importance of it. Notably, CLM or rather CSCMP which CLM has renamed, defines supply chain management as the "planning and management of all activities as well as coordination and collaboration with channel partners which can be suppliers, intermediaries, third-party service providers and customers." ...read more.


Logistics is not supply chain management, but it is a very large integral of the supply chain. Supply chain management is merely the analysis of how processes such as logistics are achieved and through these analyses, comes the plans and implementations to achieve a higher efficiency in these processes. Reference List Bonney, J. 2004, 'Beyond transportation and logistics', Journal of Commerce, pp 1. Retrieved: April 29th 2005 from Proquest Council of Supply Chain Management Professionals (CSCMP), 2005 Retrieved: April 29th 2005 from http://www.cscmp.org/Downloads/Resources/glossary03.pdf Jenkins, M. 1995, 'What is logistics anyway?', Traffic Management, Vol. 34, Iss. 5, pp 71. Retrieved April 28th 2005 from Proquest 'Logistics Today's 10 Best Supply Chains', 2003. Logistics Today Vol. 44, Iss. 12, pp. 20. Retrieved: April 29th 2005 from Proquest Morberg, R. C., Speh, T. W., Freese, T. L., 'SCM: Making the vision a reality', Supply Chain Management Review, Vol. 7, Iss. 5, pp 34. Retrieved: April 30th 2005 from Proquest Muller, E. J. 1993, 'Distribution magazine's guide to logistics buzzwords', Distribution, Vol. 92, Iss. 4, pp 38. Retrieved: April 30th 2005 from Proquest Rockford Consulting Group, 1999. 'Supply Chain Management' Retrieved: April 30th from http://logistics.about.com/gi/dynamic/offsite.htm?zi=1/XJ&sdn=logistics&zu=htt p%3A%2F%2Fwww.rockfordconsulting.com%2Fscm.htm Siems, T. F. 2005, 'Supply Chain Management: The Science of Better, Faster, Cheaper' Retrieved: April 29th from http://www.scm.ittoolbox.com/documents/document.asp?i=2864 Trent, R. J. 2004, 'What Everyone Needs to Know about SCM', Supply Chain Management Review, Vol. 8, Iss. 2, pp 52. Retrieved: April 28th 2005 from Proquest Trunick, P. A. 2004, 'The changing face of Europe', Logistics Today, Vol.45, Iss.6, pp 42. Retrieved: April 29th from Proquest Webster Dictionary, 2005 Retrieved: April 29th 2005 from http://www.logisticsworld.com/logistics.htm Wilton, D. 2005, 'Origin of the Word Logistics' Retrieved: April 29th 2005 from http://logistics.about.com/od/logisticsdefined/a/origin.htm ...read more.

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