SCM: It is the series of activities which starts from acquisition of raw materials till they are supplied to the end users.
Logistics: it is how we fulfill the needs of the consumers by managing the activities from where the good is created to the point it is used.
• SCM is a broader term, as its aims are much bigger than logistics. Logistics require the activities of a single firm whereas SCM is work done by number of organizations in order to achieve their respected goals.
• The aim of Logistics is to satisfy its consumers whereas SCM works to gain competitive advantage among other firms.
According to Stock & Lambert (2001) SCM “is the integration of key business processes from end user through original suppliers that provides products, services, and information that add value for customers and other stakeholders”. (http://www.tandfonline.com/doi/full/10.1080/13675560310001619240)
As it is understood from this …show more content…
As it closely observe the current and future market trends and economy’s ups and downs, it minimizes the risk factors.
Cons of SCM:
As there are many benefits of SCM if it is not manage properly it could bring tremendous losses to the business. Below are some disadvantages of SCM.
• Error in Information Handling:
SCM involves managing inventory; for which SCM management software are used; but if any inaccurate information is entered it would be troublesome, it can disturb the flow of inventory which can bring adverse effects and can effect reputation of the company.
• Cost of Training:
SCM links together with Just-In-Time supply to improve proficiency as well as it reduces waste. It requires substantial planning and training which of course requires huge amount of time and money; often more than company forecasted. If the outcome is not up to the mark or as anticipated the training and planning became an overhead cost for the organization.
• Lean Supply Chains Tend to be
Logistics: it is how we fulfill the needs of the consumers by managing the activities from where the good is created to the point it is used.
• SCM is a broader term, as its aims are much bigger than logistics. Logistics require the activities of a single firm whereas SCM is work done by number of organizations in order to achieve their respected goals.
• The aim of Logistics is to satisfy its consumers whereas SCM works to gain competitive advantage among other firms.
According to Stock & Lambert (2001) SCM “is the integration of key business processes from end user through original suppliers that provides products, services, and information that add value for customers and other stakeholders”. (http://www.tandfonline.com/doi/full/10.1080/13675560310001619240)
As it is understood from this …show more content…
As it closely observe the current and future market trends and economy’s ups and downs, it minimizes the risk factors.
Cons of SCM:
As there are many benefits of SCM if it is not manage properly it could bring tremendous losses to the business. Below are some disadvantages of SCM.
• Error in Information Handling:
SCM involves managing inventory; for which SCM management software are used; but if any inaccurate information is entered it would be troublesome, it can disturb the flow of inventory which can bring adverse effects and can effect reputation of the company.
• Cost of Training:
SCM links together with Just-In-Time supply to improve proficiency as well as it reduces waste. It requires substantial planning and training which of course requires huge amount of time and money; often more than company forecasted. If the outcome is not up to the mark or as anticipated the training and planning became an overhead cost for the organization.
• Lean Supply Chains Tend to be