Logistics and Supply Chain Management - Essay Example

Supply chain management is therefore the process of controlling the system of downstream and upstream organizations of material, information. These processes are the ones that assist in the manufacture of products and services for customers. Logistics is the word for all the processes involved in getting the right product, in the right way, quality and quantity, in the right time, for the right customer and at the right cost . Many scholars have tried to clarify the difference between logistics and supply chain management.

From their works, we can analyze that supply chain management was derived from logistics. From the traditionalist point of view, supply chain management is a part of logistics. In the traditionalist view, the latter is the wider field. In a unionist view, logistics is a part of supply chain management since the latter is a wider concept. However, a more neutral ‘intersectionist’ approach has emerged which states that logistics and supply chain management are interrelated disciplines since both can be applied to the benefit of the company in terms of cost savings and enhancing the service .

Any supply chain, be it straightforward or complex, begins with the customer and ends with the customer. The chain begins with the customer since the client must first make a commitment to buy the product being sold. By contacting the office, a sales order for the required quantity is prepared. If the product is to be manufactured, the sales order is taken to the production plan and it includes the requirements that need to be fulfilled. Planning is the next step. In planning, the company creates a production plan which will effectively manage the process and make sure it runs smoothly and effectively.

The next step is purchasing. Here, the company receives the list of raw material needed to make the customer’s request and the purchasing department writes and sends out purchasing orders to their preferred suppliers to provide the necessary items within the set time. Inventory is the next step. Here, the company checks the quality and accuracy of the materials received from the suppliers. They also record the materials into their inventory management system and take them for storage. The supplier then sends an invoice for the items delivered.

While following the production plan previously written, the raw materials are moved to the production floor. In the production floor, the company transforms these raw materials into the finished goods. The final items are tested to make sure they meet the standards of both the company and the client then stored in the warehouse. The final step is delivery of the items to the customer. Here, the shipping department ascertains the best way to ship the products to the customer. After delivery, the customer signs to accept delivery and the company sends an invoice for the delivered goods to the customer.

Comparative Profiles of the Organizations This research paper gives a comparison of two companies involved in the distribution and supply of grocery. One is Seal Honey and the other goes by the name Fresh Mart. These two companies are head to head competitors. They sell the same products and there is no much difference in their pricing. Both companies have been in the industry for