Understanding Supply Chains Within Logistics Management

Logistical operations require a great deal of management and co-ordination. Because of this many different categories are used to organise the different areas of logistics management. One of these categories is the subject of supply chains, which this post discusses.

The Supply Chain Defined

An important thing to outline first is that the terms, supply chain and supply chain management are two completely separate entities. This is important to establish as they are often interchanged by mistake.

The supply chain itself is a system of organizations, people, activities, information, and resources involved in the planning, moving, or storage of a product or service from supplier to customer. Ironically it is structured more like a web than a chain.

Supply chain activities transform natural resources, raw materials, and components into a finished product that is delivered to the end customer.

Supply chain management is defined as the planning and management of all activities involved in sourcing, procurement, conversion and logistics management.