The Importance of Supply Chain Management - Safeducate

What is supply chain management- How supply chain work

 

All the aspects of sourcing, procurement, conversion and logistics management, are the part of the supply chain management. Above all, it encompasses the coordination and collaboration with the parties like suppliers, intermediaries, distributors and customers. Supply Chain Management, it is a term which refers to the connect, the suppliers to the end consumer. It has been noticed that there is a drastic change in the manner in which business was conducted many years ago and now. Due to the innovation in technology in many years, a major development has happened in all the important spheres of the business,

  

Supply Chain Management also evolved as an improvement over Logistics Management, from past years. Logistics is a word practised in the military for the maintenance, storage and transportation of army persons and goods. It has also been said that SCM is an addition over Logistics Management as well as SCM comprises of logistics. Both are inseparable. 

Hence they do not contradict but supplement each other. It has been noticed that there is a drastic change in the manner in which business was conducted many years ago and now. All the activities, associated with the sourcing, procurement, conversion and logistics management, comes under the supply chain management. Logistics management is a small part of this big aspect takes care of the commodities in the right manner.  

Supply Chain Management can be considered as an improved version of Logistics Management which helps in running the business in a better way. This word is no longer limited to military , it is profusely used in the business regarding goods and commodities. SCM leads logistics to take care of transportation, storage and distribution team.

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