What is logistics and supply chain management?
She lives on a 500-hectare
farm in South Africa.
Her typical day starts off being walked
to the sheds to be milked and spends
the rest of her day grazing in the fields.
And takes the milk to be pasteurized.
Farmer Brown then hops in his truck
What does happen?
Have you heard of
the supply chain?
There is a whole process that
happens at Farmer Brown’s
farm and outside it!
This process is called the
The Council of Supply Chain Management Professionals defines Supply Chain
Management as: “The planning and management of all activities involved in sourcing
and procurement, conversion, and all logistics management activities. Importantly, it
also includes coordination and collaboration with channel partners, which can be
suppliers, intermediaries, third-party service providers, and customers.”
What is supply chain management?
What does that mean?
The entire process from Daisy all the
way to the milk bottle in your fridge is
the supply chain.
CSCMP defines logistics as: “That part of supply chain management that plans,
implements, and controls the efficient, effective forward and reverse flow and storage
of goods, services, and related information between the point of origin and the point
of consumption in order to meet customers' requirements.”
What is logistics?
What does that mean?
That will be all the work Farmer Brown
does on his farm.
The difference between
supply chain and logistics
Supply chain management is an integrating
function, integrating all business functions and
business processes within and across company
boundaries. The supply chain, therefore,
extends beyond a company’s borders to include
supplier and customer relations, as well as
other possible supply chain partners such as 3rd
party logistics providers.
Logistics forms part of the supply chain and
coordinates and optimises all logistics activities
within a company’s borders in order to satisfy
As you can see that
there are a lot of
people involved in
this process, even
how things are done.
Did you know that
there are areas of
trade in supply chain
and logistics you can
Be sure to check out eduKazi for
courses specializing in the supply