Integrating and optimizing logistics activities

Supply chain management (SCM) encompasses the planning and management of all activities, involved in sourcing, procurement, and conversion; and all logistics management activities which means having the right thing, at the right place, at the right time. It also includes coordination and collaboration with channel partners, such as suppliers, intermediaries, third party service providers and customers. In essence, SCM integrates supply and demand management within and across companies.

SCM is the system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities focus on purchase, production, and material distribution. Logistics management is a small but integral part of SCM.

SCM or logistics management activities typically include inbound and outbound transportation management, fleet management, warehousing, materials handling, order fulfilment, logistics network design, inventory management, supply/demand planning, and management of third-party logistics services providers. It involves all levels of planning and execution – strategic, operational and tactical.

Shardul Thacker is a partner at Mulla & Mulla & Craigie Blunt & Caroe in Mumbai.