Supply Chain
Management/Logistics Management Definitions
CSCMP Definition of Supply Chain
Management
Supply Chain Management encompasses the planning and
management of all activities involved in sourcing and
procurement, conversion, and all Logistics Management
activities. Importantly, it also includes coordination and
collaboration with channel partners, which can be suppliers,
intermediaries, third-party service providers, and customers. In
essence, Supply Chain Management integrates supply and demand
management within and across companies.
Supply Chain Management – Boundaries &
Relationships
Supply Chain Management is an integrating function with
primary responsibility for linking major business functions and
business processes within and across companies into a cohesive
and high-performing business model. It includes all of the
Logistics Management activities noted above, as well as
manufacturing operations, and it drives coordination of
processes and activities with and across marketing, sales,
product design, finance and information technology.
CSCMP Definition of Logistics
Management
Logistics Management is that part of Supply Chain Management
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 customers' requirements.
Logistics Management – Boundaries &
Relationships
Logistics Management activities typically include inbound and
outbound transportation management, fleet management,
warehousing, materials handling, order fulfillment, logistics
network design, inventory management, supply/demand planning,
and management of third party logistics services providers. To
varying degrees, the logistics function also includes sourcing
and procurement, production planning and scheduling, packaging
and assembly, and customer service. It is involved in all levels
of planning and execution – strategic, operational and tactical.
Logistics Management is an integrating function, which
coordinates and optimizes all logistics activities, as well as
integrates logistics activities with other functions including
marketing, sales manufacturing, finance and information
technology. |
