You may have heard this term before, but are possibly unaware of what it actually means. If you work in a business where you have to deal with logistics and chain management then you should really know not only what it means, but how it affects you and what kind of logistics that your company is dealing with.

Logistics generally refers to the activities which occur within the boundaries of a single organisation. The Supply chain is the network of companies who work together, coordinating their individual actions to deliver a product to the market. Traditional logistics focuses its attention on the procurement of products or materials, distribution of said products, looking after and maintaining them and managing inventories. So although the term logistics is quite basic it actually covers a wide array of areas and is a complex and challenging task.

Supply chain management is similar to logistics, in that it acknowledges and works on many of these different aspects of logistics. However, supply chain management (SCM) also involves other aspects such as marketing, developing new products, finance and customer service. So while SCM covers all the basic aspects of logistics, it adds to and improves the overall quality of the service by taking on far more challenges. Often these challenges and tasks are more fitting for newer companies who need more developing.

Historically, logistics was undertaken by a wide range of different departments within a company. But these days it’s much more likely to be the job of just one singular logistics department. This is in part due to the fact that logistics are ever changing and expanding so it makes more sense to just have one department. So generally, there is a head of the logistics department and different sectors within the department who all report to the head of logistics.

Being the head of a logistics department is no easy task. Being a logistics manager is very difficult and you need to make sure that you’re aware of what it involves. Logistics planning means making sure the running of day to day activities is smooth and as efficient as it can be. Effective managing of the different areas of logistics is crucial because without it, the whole company could fall into disarray. There are different types of logistics too, that all managers should be aware of. There is inbound logistics which involves securing materials and goods from other suppliers and companies, then there is outbound logistics which involves moving your finished products to the customer.

As you can see, logistics and supply chain management are very complex departments of business, and they all need to be run smoothly to ensure that every other department in the company can do their job properly too. It is important to make sure that you fully understand not just the importance of logistics and supply chain management for companies, but also how it affects you and what you can do to help the efficiency of the department.