Kelsi Frederick
SCLM436-871A
2.2 Assignment
Prepared For: Supervisor, Walmart Operations Manager A2 Shift
Prepared By:
Kelsi Frederick
Regarding: Supply Chain versus Logistics
There are many moving parts and subjective ideas within the supply chain and logistics field. One thing, however, that should be known is that the phrase “supply chain” often refers to the entire flow of goods and services or the network of organizations, people, activities, information, and resources involved in delivering the product or service to the consumer. That being said, logistics would be just one aspect of supply chain and supply chain management. Supply chain management often involves multiple functions such as marketing, operations, distribution, finance, and more. It is the integration of critical business functions. Logistics is the link in the chain concerned explicitly with transporting and storing goods and services from start to finish, making it a significant part of the supply chain. While there is a difference here, there is
now, more than ever, a considerable overlap of supply chain management functions. Larson and Halldorsson (2004) stated, “the unclear conceptual boundaries of SCM make it difficult to practice without large overlap with other fields such as logistics, marketing, operations management, and purchasing.” Due to the overlap, I would further discuss the supply chain and logistics to understand the boundaries better.
With all the technological advancements and research, supply chain and logistics are similar in our current era. Referring to earlier research topics of logistics, “classic topics such as transportation, inter-organizational relationships, 3PL/outsourcing, customer service/satisfaction,
and inventory are still well represented.” However, risk management, resilience, and sustainability topics have emerged in our current era. Many of these topics can also be applied to supply chain management. For example, risk management should be involved in marketing to understand the risks of new campaigns or strategies. Furthermore, sustainable practices, while significant to logistics due to transportation modes, are also essential in manufacturing and other operational parts within a supply chain.
Since a supply chain represents the entire flow of goods from end to finish, many functions could be outsourced by the product or service owner. This largely depends on what the firm does and if they are being as efficient as possible. In other words, are they focusing on core competencies? Some standard functions are to be outsourced within the supply chain and logistics management, including manufacturing, accounting, IT management, and logistics. The firm may be incapable of making a specific part or even the entire product itself. Still, they know
what they need, so they outsource to a capable manufacturer. The same goes for accounting and IT management, where specialists are likely required. Logistics is also an outsourced function but is significantly more researched and discussed. Logistics is such a large concept at this point that some believe SCM is a function within logistics, not the other way around. Whatever the case is, logistics is commonly outsourced. Think of the home appliance company, Whirlpool. They outsource to a 3PL company, J.B. Hunt, which helps store and transport goods.
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