Supply Chain Management or SCM comprises all activities under producing goods and services. The working of the supply chain involves getting a finished and shaped product to the consumer. Production involves sourcing the raw materials, moving them to production, and transporting the finished products to distribution centers or retail stores where the products are delivered to customers.
Supply chain Management is defined as the procedure of planning, coordinating, and executing the movement of goods and services from providers to consumers. The key goal of SCM is to optimize the flow of goods and information to ensure that the product is delivered to the consumers in the most- efficient and cost-effective manner.
Supply chain management institutes in Kerala provide the best training for Logistics and Supply chain management. The courses provided by the institutes disclose the chances around the world, concerning opportunities and placements. Even though SCM and Logistics are seems different, they complement each other in spite of their differences. In practice, SCM involves several movements such as Planning, Sourcing, Procurement, Production, Transportation, Warehousing, and Distribution.
1. Planning and forecasting: The first step in SCM is to plan and forecast the demand for products and series. This comprises analyzing historical sales data, market trends, and customer feedback to develop accurate forecasts of future demand.
2. Sourcing: This is to identify and select providers who can provide the requisite raw materials, components, and services to meet forecasted demands. This involves negotiating demands, managing relationships, and monitoring supplier performance.
3. Manufacturing: Once the raw materials and components have been collected, they will be transformed into finished goods through manufacturing processes. Throughout the manufacturing process, SCM involves coordinating production schedules, managing inventory levels, and ensuring quality control.
4. Logistics: Once the finished goods are produced, they need to be transported to distribution centers, warehouses, or directly to customers. SCM aids in coordinating transportation, managing inventory levels, and optimizing the distribution network to ensure efficient and timely delivery.
5. Customer Service: This comprises managing customer relationships, handling complaints, and providing after-sale- reports.
Logistics management can be explained as the process of planning, implementing, and controlling the movement of goods, information, and services from their point of origin to their point of consumption. The goal of logistic management is to ensure the product is delivered at the right place, at the right time, and at the right quality and cost. The efforts of a number of organizations working together as a supply chain that aids to manage the flow of raw materials and guarantees the product value of finished goods. The Council of supply chain management professionals defines logistics as “part of the supply chain process that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customer’s requirements”.
More than just providing training sessions, Logistics institutes in Kerala unlock a successful career not only in Kerala but worldwide. Logistics is an activity that comes under supply chain management which focuses on the cost-effective and efficient delivery of goods transporting those within a company. The process of logistics can be divided into two categories. Inbound Logistics and Outbound Logistics. Inbound logistics comprises activities concerned with obtaining materials, and then handling, storing, and transporting them. Outbound logistics deals with the activities concerned with collection, maintenance, and distribution to customers.
It is vital to remember that the terms Supply chain management and Logistics management are processes that cannot exist without each other.
Supply chain management is a way to link major business processes within and across companies into a high-performance business model that drives competitive advantage. Logistics is an activity within supply chain management that refers to the movement, storage, and flow of goods, services, and information inside and outside the organization. When logistics focuses on the movement and storage of items in the supply chain, SCM comprehensively covers all of the coordination between the partners and those who have a role in this network, including sourcing, manufacturing, transportation, storing, and selling.
To effectively and efficiently manage the supply chain, organizations utilize a combination of technological tools such as Enterprise Resource Planning (ERP) systems, Warehouse Management Systems (WMS), Transportation Management Systems (TMS), and Customer Relationship Management (CRM) Systems. These management systems aid to automate and streamline the various activities involved in the supply chain, improvising efficiency and reducing costs. SCM consists of high-level procedures involving buying raw materials and eventually creating finished goods. SCM uses logistics to deliver goods to the consumer, but the ultimate aim is to uplift the bottom line and increase a business’s competitive edge. That is SCM frame the strategy and directs the daily logistical activities that happen in warehouses, factories, and other local shipping centers. Logistics is an aspect of the supply chain that delivers the goods or services to the customer, whether it’s a manufacturer, distributor, or consumer. Logistics focuses on and ensures getting goods and services to the customers on time and at a competitive price.
Top logistics institutes in Kerala offer certification courses, diploma courses, and post-diploma courses, especially, in the field of logistics, because it is much more in demand not only at the national level but also at the international level. Logistics is constantly evolving as customer trends change and the training helps employees and their companies stay up to date with better practices. Proper training aids the company to find the tools it needs to analyze and improve customer demand, product design, and distribution strategies.
Supply chain Management as well as Logistics support customer needs and enhances their buying experience. While logistics provide direct feedback on customer demand, SCM consists of a variety of activities, including production planning, inventory and labor planning, materials, and facilities management, manufacturing, and delivering goods and services. In Supply Chain Management, logistics are responsible for the movement and storage of goods and services, along with reports and documents that record the movements throughout an item’s journey to the customer.