Question

Define supply chain management. What are the objectives of supply chain management? What is the objective of logistics management?

Answer 1

Answer) Supply chain management is nothing but the management of the flow of goods and service, which involve the movement from supplier to manufacturer to wholesaler to retailer to costumer. Supply chain management does not involve the physical movement only but include any type of data which goes through along with the product.

OJECTIVES OF SUPPLY CHAIN MANAGEMENT

Supply chain management is nothing but the design, planning, execution, control and monitoring of supply chain activities.

Objectives of supply chains are as follows:

• It solves the supplier’s problems beyond his level.
• It improves the customer service performance.
• It reduces the pre and pro production inventory.
• It minimizes variance by means of activities such as standardization, variety, reduction, etc.
• minimum total cost of operation and procurement.
• It controls the product quantity.
• It helps in achieving maximum efficiency in using labor, capital and plant through the company.
• Flexible planning and control procedures.

Logistics management is nothing but the supply chain management component which is used to meet customer demands through the planning, control and implementation of the effective and the storage of the related information, goods and services from origin to destination.

OBJECTIVES OF LOGISTICS MANAGEMENT

• It makes the product available right quantity of right quality products at the right place and time at right conditions.
• It offers the best service to the consumers.
• It reduces the cost of operations.
• It helps in maintaining the transparency in operations.