It is the process used for manufacturing companies; this is the complete process of the raw material to the final product. Storing the fabric and ship to the final destination comes in logistic and supply chain management. Logistics and supply chain management is the same process, but there is some difference in both services.
What is Logistics Management?
Logistics Components coordinating resources to permit the timely shipping and use of materials can make or break a company. Though many small companies focus on designing and producing their products and services to meet client requirements best, the company will fail if these products cannot achieve clients. That is the significant role that logistics plays.
All manufacturing companies need a transportation service for their goods from the origin to the consumer with safety management and stock inventory, for example, delivery of raw materials, shipment, warehousing, and transportation of products from the shipper to the consumer.
Main components of logistics management
Inbound logistics is a process of transporting goods from the shipper to the warehouses. Goods are stored in the warehouses to manage and inventory the interests before shipping to the end customer. Mostly raw material and unfinished goods come in the inbound logistics and it goes to complete the process of raw material before last party shipment.
“Outbound logistics” is the final process of shipment. It is the process of storing finished transportation goods to the customer. The outbound process starts with consumer order, and it goes to the next cycle of packaging the product before the final shipment. To make outbound logistics fast and safe, you need to pick the right logistics company to maintain the sensibility and optimized delivery.
Fleet management is the process that fleet administrators utilize to maintain all fleet and asset reports, from procurement to disposal. This enables companies to reduce costs, improve efficiency, and ensure compliance across an entire fleet operation.
Warehousing is the process of storing goods which transport later. The warehouse has a different size and storage capacity for goods. A warehouse should have a spare room, garage, space for storage, racks labours, etc.
Supply Chain Management
Supply chain management handles the movement of those raw materials and components from the start of production through delivery to the customer. In many businesses, operational supply chain decisions are made many times every day, affecting how products are manufactured, fabricated, moved sold. The complexity of distribution varies with the business’s size, the complexity, and the Number of things manufactured.
The components of supply chain management
1. Consumers: Customers start the chain of events once they prefer to buy an item that has offered purchasable with a firm. Just if the merchandise has got to be fabricated, the earnings order will incorporate the requirement that has got to complete with the assembly facility.
2. Preparation: the design department will create producing planning to supply the products to fulfil the client’s orders.
3. Buying: The buying department receives an inventory of raw materials and services needed by the manufacturing department to end the clients’ orders.
4. Inventory: The providers’ raw materials, checked for quality and accuracy and preceded the warehouse.
5. Production: consistent with a production program, the raw materials moved to the assembly area. Utilized these raw materials used to manufacture the finished products arranged by the customer then sent to the warehouse where they anticipate shipping.
6. Transportation: When the ultimate product arrives at the warehouse, the transport department determines the effective central system to send the works to deliver on or before the client’s date.
Difference between logistics and supply chain management
1. Supply chain management is a way to link significant business processes within and across companies into a high-performance business the model that drives competitive advantage.
2. Logistic used for movement, storage, and flow of goods from the origin to the destination
3. Logistic is part of the supply chain management system