The three topics are related but distinct. As Amit said, logistics and operations typically fall under the umbrella of the supply chain management. In fact, the entire purpose of supply chain management is to act as a perspective through which one can understand, review, and optimize the interior and external activities of a business.
Whenever requested what supply chain administration is, we usually believe it is useful to inform people that it may possibly be better understood due to the fact handling of the string of materials. Also to more explain that it can better still be recognized once the handling of the circulation of worth.
Operations administration may be the management of those activities that generate continual value when it comes to firm.
Logistics management is ensuring that everything is gets to in which it must be when it’s required.
Additionally important, should make the concepts relatable. Imagine a pizzeria.
A pizzeria’s work should simply take ingredients, transform it into pizza pie, and sell it to individuals who wish pizza but aren’t in a position to make it by themselves.
The functions of a pizzeria are associated with activities involved in making that take place. It’s the process wherein a business transforms assets into revenue.
The procurement activities of a pizzeria are determining what components, materials, and equipment should be bought to make that happen.
The logistics activities of a pizzeria are associated with the activities between utilizes. Someone needs to take the delivery inside, take inventory, ensure continuous refrigeration, and ultimately get that pizza into the customer’s hands.
The fundamental notion of the field of offer chain management is throughout each one of these tasks, it’s possible to trace a sequence ownership of those products and locate how to increase the flow and achieve greater effectiveness when it comes to company.
