Supply chain management and third party logistics are gaining huge importance in this modern era. These days’ logistics is considered to be an integral part of any given business around the globe these days.
What is Supply Chain ?
Supply chain includes all the activities of a business process including all vendors, search providers and customers. It involves all the movement of fund, material and all the related information about the business through the full logistics process. It includes the buying of raw material to delivery of the final product.
What is Logistics ?
Official Explanation: “Logistics is that element of the supply chain method that plans, utilizes, and controls the effective, effective flow and storage of goods, services, and relevant details from the factor of origin to the point of intake in order to meet customers’ requirements.” Council of Logistics Management
Logistics is basically the process of moving of the products or goods to the destination at the least possible cost. Logistics involves the responsibility of exercising efficiency and accuracy in the process, selection of medium and their proper execution is the biggest concern of the logistics process.
Supply Chain Management (SCM)
The process of supply chain management includes the control of all the funds, information of the products, and materials, throughout the whole process of product creation.
Reasons why companies would want to move into a long term partnership may include:
- To achieve the strategy.
- Benefit from each other’s strategies.
- Reduction of risk.
- Increase return on investment.