Supply chain management is translated into SCM, which talks about the so-called "chain" concept; The English word for Logistics is logistics, which is traditionally understood as shipping, warehousing, customs and internal logistics (such as handling, loading and unloading, and distributing materials to production lines).
Mainly talking about the concept of "mobility".
Many people confuse supply chain management with logistics management. In fact, these two concepts are both related and different.
Supply chain management consists of three parts: supply management (supplier part), operation management (company internal management) and logistics management (customer). To put it simply, supply chain management means purchasing from suppliers (supply management), further adding value internally (operation management) and delivering it to customers (logistics management). The logistics management here is outbound.
Logistics (outbound logistics, that is, the final product flows from the company to the customer). Of course, procurement also involves certain logistics management, that is, warehousing.
Logistics (inward logistics, that is, semi-finished products and parts flow from suppliers to companies). Inward logistics is generally simple, so many companies are in charge of purchasing department. Outward logistics is more complicated and is generally handled by specialized logistics management departments.
Logistics is actually warehousing and transportation, only with the concept of informationization and integration; Supply chain management is actually the management of the process from material procurement to production and processing to delivery to final customers. We can understand the relationship between them. Logistics management does not include supply chain management, but supply chain management must include logistics management.
When it comes to logistics, we can't help but talk about third-party logistics. The third party logistics is actually a professional logistics service provider. Because logistics is not the core competitiveness in many companies, it is outsourced to some professional logistics companies, which is called "process outsourcing" (business
process
A kind of outsourcing. This specialized logistics company includes warehousing, transportation and other related services. In the United States, such logistics companies are generally not well paid, especially blue-collar workers, because they don't need much knowledge and skills.
Domestic logistics fever is also related to the lagging development of logistics management. In the United States, after decades of development, logistics management is now relatively perfect and effective, and the whole logistics cost accounts for about 10% of the gross national product. In China, logistics has only developed in recent years, with imperfect management, lack of professional managers and high logistics cost, which is estimated to account for about 20% of the gross national product, and has great potential to be tapped. On the other hand, the domestic manufacturing industry has developed rapidly and has become the manufacturing center of the world. There are a large number of products that need to be circulated, and it is urgent to improve logistics efficiency.