Logistics and supply chain mgnt Essay Example | Topics and Well Written Essays - 3000 words

Logistics and supply chain mgnt - Essay Example extraction of raw material to the sale of the finished product to the ultimate customer, whilst taking into account organizational, technological and human factors in a integrated supply chain. The customer most times keeps limited inventory of the products he/she uses, as many of these products are perishable and prefers to purchase them frequently as and when required. As most of their demands are due to requirement at their end, purchase decisions may be influenced by the availability of product in the racks and this were the supply chain management comes into the picture. So, the vitality of the supply chain management for the running of the organization cannot be whisked away. The potential of integrated supply chain is considerable. For example, a global study conducted by the supply chain council demonstrated the potential for cost reduction between 3 and 6 percent of turnover (supply chain council). From the earlier centuries itself, production of goods useful for the humans is an ongoing process and organizations are organized to continue the ongoing process into complete and successful process. And, for the process to be a complete and successful one, the important link in the chain of the organization, which ‘joined’ all the process, is Supply Chain Management. And there are reasons why its utility is of recent origin and why is it important to the 21st Century philosophy of Logistics. SCM (Supply Chain Management) is considered a recent concept because in 1982 only, Keith Oliver of the strategy-consulting firm, Booz Allen Hamilton, first coined it. Keith Oliver through the course of an argument with the manager named Mr. Van t’Hoff coined the word â€Å"supply chain management†. And while coauthoring an article for financial times, he introduced the term to the world. The term ‘supply chain management† (SCM) could have easily disappeared into the history of business jargon. Instead, SCM rapidly passed into the public domain — a sure