The supply chain is a framework that links together the multiple functions and processes required to create a good or service and provide it to an end-user.
The goal of supply chain management is to achieve competitive advantage and create value by making strategic decisions at each of the steps. You can find more information about supply chain and logistics via Ship Hype.
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Stages of Supply Chain Management
Stage 1: Product development & innovation
Stage 2: Obtaining raw materials from suppliers
Stage 3: Manufacturing a good
Stage 4: Distribution to retailers and end-users
Stage 5: Coordinating the return of defective or unwanted products
What is Logistics?
Logistics encompasses all of the movement of goods between each of the different supply chain organizations. Beyond the moving of products, logistics stores goods until they are needed. Using warehouse management systems, logistics provides critical inventory management and order fulfillment functions.
By finding ways to move products faster, and for less money, logistics increase end-user satisfaction and improves the customer experience.
How are Supply Chain and Logistics Related?
Returning to our supply chain model, logistics is undeniably key to Stage 4 (Deliver). But logistics goes far beyond the activities of a single stage in the supply chain, or even those of several stages.
Logistic activities are what tie together and power supply chain systems. And logistics done well helps supply chain managers achieve their goals by creating efficiencies and cost-saving opportunities.