Role of Logistics in Supply Chain - Introduction to Logistics Management Video Lecture | Logistics Management - B Com

In chapter 3 we will explore the role of
logistics and supply chain management.
It is important to delineate more
explicitly the relationship between
logistics management and supply chain
management. Supply chain management has
been defined using a pipeline analogy: the initial supplier to the ultimate customer.
Another perspective is a connecting
network of the logistic systems and
related activities that are part of a
particular supply chain.
Logistics management encompasses logistic systems not only in the private business sector
but also in a public or government
sectors as well as nonprofit sectors. In
addition, service organizations such as
banks, hospitals, restaurants, hotels have
logistics challenges and issues as well.
Each of these subdivisions or sectors
have some common characteristics and
requirements such as forecasting,
scheduling and transportation.
To determine the efficiency of the
logistics system total logistics costs
need to be measured in relationship to
gross domestic product or GDP which is a
widely accepted barometer used to gauge
the rate of growth in the economy.
The micro dimension of logistics examines the relationships between logistics and
other functional areas in organizations:
marketing, manufacturing operations,
finance and accounting among others.
A system is a set of interacting
elements, variables, parts or objects that
are functionally related to one another
and form a coherent group. The general
tenet of the systems concept is that the
focus is not on individual variables but
on how they interact as a whole.
The objective is to operate the whole
system efficiently and effectively not
just the individual parts. Here we have
two types of systems analysis.
One is static and the other one is dynamic where one looks at a specific point in
time and the other one looks at a long
period of time.