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Understanding Between Supply Chain Management and Logistics (Coursework Sample)

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Understanding between supply chain management and logistics
Supply chain management
In my opinion, supply chain management refers to efficiency in the process of manufacturing and distributing physical goods. Therefore, the entire supply chain management process entails manufacturing and distribution of physical goods, and also includes purchase and procurement activities. There are several business functions that are instituted in the realm of supply chain management. For example, manufacturing and assembling, forecasting and planning, procurement and purchasing, warehousing and distribution, inventory management and order management, returns and refurbishment, shipping and transportation. In other words, supply chain management includes the five traditionally functions of the plan, buy, make, store, move, sell, and return. In the United Kingdom, there has been collaboration between different food companies resulting into supply chain. For instance, retail companies have a shared their purchasing expertise with suppliers as food company such as the Rank Hovis work directly with producers, farmersCITATION Coy08 \p 56 \l 1033 (Coyle, Langley and Gibson 56). The supermarket company also views the importance of the aforementioned chain as it also benefits from manufactured food products from the company. Supply management is based on an efficient process of sourcing the required components and delivery of finished goods to respective customers in the cost effective and reliable way.
Logistics
Logistic, on the other hand, refers to the supply chain management part that entails distribution, transportation, and inventory management. In its definition, logistic is referred to as the transition of materials either inbound, or outbound. According to the traditional functions, logistics constitutes store and move functions in the supply chain management process. Logistics according to the research study, transportation cost is the most costly element in financial statements of many companies. Often, transportation costs are double the costs of warehousing and inventory carrying costsCITATION Fre09 \p 56 \l 1033 (Fredendall and Hill 56). The cost of transportation can be above 10 percent of the revenue while that of warehousing and inventory can be approximately 5 percent of the revenue.
Effects of food safety management
Customers
Food safety management practices are important to company's customers, suppliers, and entire supply chain management. According to Food and Drug Administration (FDA), food safety is one of the core aspects that help in ensuring healthy condition and prevent diseases. The issue of food safety has been of global concern to governments, and other private agencies that have engaged in campaigns on food safety measures. Food safety has a significant effect on customers as they are part of the primary consumers of food products. As a result, poor food safety can lead to health complications, resulting into diseases. Food safety management practices need to be put into consideration in order to promote better health conditions. Consumer protection legislations have also been put in place in order to ensure food security and safety practices among producers. United Nation agencies such as WHO and FAOP have established an organization that ensures food security and safety top consumers. The move has been precipitated by raised concerns about food poisoning and adverse effects caused by poor food safety practicesCITATION Sha09 \p 68 \l 1033 (Shah 68). Apart from the health perspective, food safety management practices have an imperative impact on sales, and revenues of the company. An organization with safe management practices will attract more customers and subsequent high revenues.
Suppliers
Food safety management practices can also have an imperative impact on suppliers. Suppliers are responsible for replenishing food stocks and inventory materials once they reach the minimum inventory level. Therefore, the rate at which inventory material diminish in the store is correlated with fresh supplies. Food safety management practices determine the rate at which food materials or inventory gets depleted in the store. For example, the adoption of food safety management systems in an organization translates into prolonged inventory span. Therefore, provisions to the organization will take a relative long periodCITATION Coy08 \p 67 \l 1033 (Coyle, Langley and Gibson 67). The complete safety and management process has a domineering impact on the general performance of the company. The FDA has urged food industries...
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