Supply Chain Logistics

A Primer

Supply chain logistics is the management of the flow of goods, information, and other resources, including energy and people, between the point of origin and the point of consumption in order to meet the requirements of consumers. This covers planning, organizing, and managing the activities involved in sourcing, procurement, conversion, and delivery. It encompasses managing the movement of raw materials, work-in-progress inventory, and finished goods from point of origin to point of consumption and requires coordinating with suppliers, manufacturers, warehouses, and retailers to ensure that materials and products are available where and when they are needed.

The goal of supply chain logistics is to improve the efficiency and effectiveness of the supply chain, and to add value for all stakeholders in the chain. This means reducing the time it takes to get products to market, reducing inventory costs, improving the accuracy of demand forecasting, as well as increasing customer satisfaction.

Multiple stakeholders are involved in supply chain logistics, including suppliers, manufacturers, logistics providers, wholesalers, retailers, and customers. Supply chain success depends on the effective management of these relationships, and the efficient movement of goods and information through the system.

Peter Drucker, a management consultant, educator, and author is quoted as saying “The most important thing in communication is hearing what isn’t said.” — his quote highlights how important effective communication is to supply chain logistics. For goods and information to flow effectively, all stakeholders within the chain must communicate effectively, to include understanding what is being said, and being aware of what’s not being said — all in an effort to anticipate and address any issues that could arise.