When it comes to business terminology, logistics management is just a component of the process referred to as supply chain management. It basically deals with the processes that are followed in order to make sure that goods and services are managed in a proper manner. Supply chain management is a much broader word. It deals with the chain that connects the suppliers and the end users or customers – the two ends of the spectrum. Normally it is seen that people often get confused when trying to deal with the concepts. Business, as it is conducted, has experienced a major change in the last few years.
Role of Technological Improvements
Technological advancements also play a major role as far as the difference between the aforementioned concepts is concerned. The scenario is markedly different these days. These days technology has made it possible to develop various areas of business in a proper way. The concept of supply chain management basically came about as a form of improvement of logistics management.
Read more on the “History of ERP & How it Has Evolved”
Differences between Logistics and Supply Chain
The word “logistics management” means an integration of the processes that are needed in order to maintain and move goods outside and inside an organization. On the other hand, supply chain management means managing and coordinating the various procedures that are part of the supply chain. The end aim of logistics management is to satisfy the customers while the main purpose of supply chain management is to get competitive advantage. Logistics management is also a fairly older concept compared to supply chain management. The principal difference between both could be the fact that logistics management normally happens in one company while supply chain management involves several companies at once. One of the main procedures in logistics management is to get the right raw material and then create the finished product and making sure that it is delivered properly to the customers.
Accuracy and quality are very important parts of the process. It is very important that the right product is sourced, it should fit the qualitative requirements, and the timing for the same should be proper as well. This process can be divided into a couple of parts – inbound logistics and outbound logistics. The activities that are related to procuring the material, and then handling, storing, and transporting it is known as inbound logistics. In outbound logistics one deals with the various processes that are related to collecting, distributing, maintaining, and delivering the final product to the customer.
How does SAP Business One make it easier?
It is not uncommon for supply chain managers to face demands of coming up with the perfect order. They may also have to live with the reality that the management expects them to function in a cost-effective method. It is in such situations that SAP Business One software can be of such help. This particular software is capable of supporting various fulfillment strategies at the same time. It does not really matter if these plans are sophisticated or if they are lean, SAP Business One can deal with them. The software can help supply chain managers come up with processes to execute their strategies. These processes are fairly scalable, which means they can be made to adapt to various situations.
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SAP Business One and goals
SAP Business One helps supply chain managers deliver what can be regarded as perfect orders and it does this by providing dates that are always on the spot. This programme can also help managers calculate inventory levels – ones that are best possible in a given circumstance – by obtaining matches of demand and supply levels for various products and services.
With this software, supply chain managers find it more convenient to adapt to demands of customers. Considering how often they keep changing it is a rather useful capability to have. This also enables the operators to function much better than they otherwise would. It also lets managers bring down the levels of inefficiency in data and process. These inefficiencies are one of the major reasons behind the escalating costs being incurred in areas such as logistics and manufacturing.
SAP Business One benefits
There are several advantages of using SAP Business One especially for the supply chain managers. It enables them to make the most of the schedule that has been earmarked for production-related processes. Similarly, they can maximize other important areas such as carrying out processes related to quality assurance and warehousing. It can also achieve a balance the capacity of materials and their amount. For this purpose it uses a pull strategy whereby the extended networks for supply come in real handy. SAP Business One can also use concepts such as supply chain visibility and sales forecast in order to guide the work that operators do on a daily basis. It also makes supply chain managers more flexible so that they can reassign work as and when the need arises.