The sphere of Logistics and Supply Chain Management is ever-burgeoning, dueto the rise in onlineshopping. A lot of companies are operating in the niche and many more start-ups are joining the race. These companies need professionals who can manage the supply chain successfully and allow the companies to maximise their profits. In such a scenario, a course in Logistics and Supply Chain Management seems indispensable to capitalise the market. That is why MIT School of Distance Education (MIT-SDE) offers a Post Graduate Diploma in Management (PGDM) in this specialisation to prepare the aspirants and to aid them in landing with a high-flying career in the field. The course familiarises the candidates with the core concepts of Supply Chain Management. Some of the vital fundamentals are described here.
Logistics and Supply Chain
By the definition, Logistics refers to the process of sending the right product in the right conditions& quantity at the right cost to the right customer at the right place and time (7R). Supply Chain,on the other hand, refers to a network of organisations, people, resources, activities, and technology that is used to deliver a product from the manufacturing units to the end users. Logistics include the activities that take place in an organisation while Supply Chain includes a network of companies/people who coordinate together in delivering the product.
Supply Chain Management
Supply Chain Management refers to the task of managing the supply chain in order to achieve optimum efficiency throughout the chain. It includes coordination of people who are involved in the task of inventory management, production and transportation.
Logistics management refers to the process of effectively managing the daily activities of the company that are associated with the production of finished products. It is an efficient logistics management that ensures that the right product is delivered to the right customers.
Types of Logistics
There are different types of logistics based on the type of movement and activities involved. These include:
Inbound and Outbound Logistics
Inbound logistics is associated with the movement of products (raw materials) from the suppliers to the manufacturing units to facilitate the manufacturing of finished goods. On the other hand, outbound logistics is concerned with the movement of finished goods from the manufacturing units/organisations to the end users.
International or Global Logistics
International Logistics or Global Logistics is concerned with the process of managing overseas activities successfully.
3PL and 4PL Logistics
3PL and 4PL logistics are the buzzwords of the present times where 3PL stands for third-party logistics and 4PL refers to fourth party logistics. Both 3PL and 4PL are related to the process of outsourcing some or most of the activities involved in the logistics. Many companies who lack in technology, resources and feel the burden of operational complexities often tend to outsource. Some companies outsource single activities like transportation while some export chief activities of supply chain like order processing, consulting, inventory management, etc. which comes under 3PL Logistics. While 3PL is directly outsourcing from the third party, 4PL involves another party that works on behalf of the company to oversee 3PL providers, design the supply chain network and to manage all the daily operations.
So, these were some basics of Logistics and Supply Chain Management. If this field enthralls you, then you can pursue our MBA-equivalent PGDM in Logistics and Supply Chain Management and widen your knowledge as well as hone your skills. The course will surely assist you in grabbing a decent position in top companies.