This document discusses the roles of logistics and supply chain management in operations. It defines supply chain management as involving the acquisition, distribution, allocation and delivery of products to customers through multiple organizations. Logistics is defined as getting the right product to the right customer at the right time and cost. Logistics management deals with efficient movement of raw materials and finished goods. Key activities in logistics include network design, order processing, procurement, inventory management, and transportation. The document also outlines several objectives and significance of effective logistics and supply chain management.

1. ROLE OF LOGISTICS
AND
SUPPLY CHAIN in Operations
Management
PRESENTED BY
• SHANMUGHAM
• SILAMBARASAN
• SRUTHI
• VASHANTH

2. DEFINITION of SCM
Supply chain management are systems that
move a product or service to the customer or
client.
Functions of the SCM includes the
acquisition, distribution, allocation and
delivery of a product or service.
The efforts of multiple organizations are
involved in making the product/service reach
the end user from the seller/manufacturer.
This is called SUPPLY CHAIN MANAGEMENT.

3. LOGISTICS
DEFINITION:
 Logistics is about getting the right product, to the right
customer , in the right quantity, in the right condition,
at the right place, at the right time and at the right
cost.
 In the past, various logistics tasks are under various
departments but now they are under a single
department called “LOGISTICS MANAGEMENT”
 It deals with efficient and effective management of
day-to-day activity in producing the company’s finished
goods and services.

4. TYPES OF LOGISTICS
INBOUND LOGISTICS
• Inbound logistics refers
to movement of goods
and raw materials from
suppliers to the
company
OUTBOUND LOGISTICS
• Outbound logistics refer
to movement of
finished goods from
your company to
customers

5. Significance (or Objectives) of
Logistics Management
(i) Cost Reduction and Profit Maximization
(ii) Efficient Flow of Manufacturing Operations
(iii) Competitive Edge:
(iv) Effective Communication System:
(v) Sound Inventory Management:

6. Key Activities Involved in Logistics
Management
i) Network Design:
(ii) Order Processing:
iii) Procurement:
(iv) Material Handling:
1. Mechanized systems
2. Semi-automated systems
3. Automated systems
(v) Inventory Management
(vi) Packaging and Labeling
vii) Warehousing
viii) Transportation

7. ROLES OF SCM
Creates job opportunity.
Decrease pollution.
Decrease energy use.
Helps sustain human life.(food,water,etc).
Improves human healthcare.
Protects humans from climate extremes.
Foundation for economic growth.
Defending human life.

8. SIGNIFICANCE OF SCM
 Delivery in a timely fashion.
 Boost customer service.
 Reduce the use of large fixed assets such as plants,
warehouses and transportation vehicles.
 Profit will be increased if the delivery of the product can be
expedited.
 It helps to diagnose problems, work around disruptions and
determine how efficiently the products can be moved.

9. Continuation of Significance of SCM
 Decreases holding cost of expensive products for retailers.
 Avoid material shortage and shutdown of production in a
manufacturing company which may lead to huge loss.
 Decrease the total supply chain cost for manufacturers and
retailers.
 Flow of material, information and finance.
 Helps to maintain the seesaw.