Supply Chain Management (SCM) and Logistics:

A simple definition of logistics would be; an integrated, synchronized and a nearly knitted chain which links all the supply and delivery interacting organisation to maintain a high quality of products in the most effective manner. Managers at all of levels should understand significance of logistics, since this is related closely to supply management. It can also be defined as :

• An integrated system which helps in managing the flow of distribution channel from the supplier to manufacturer to the end customers.
• It is a strategic coordination of all the related business functions within a particular firm and across business within the supply chain, in order to improve performance of the individual companies and of the supply chain.
• It is associated with all the activities encompassing the upward and downward movement of goods and materials from the nascent stage to the production stage to the customer. SCM integrates these activities under one control for better management and for attaining substantial and sustainable advantage. It can be better achieved through better coordination and relationship.
• It is a concerted effort of all in the channel to develop, design, manage and implement value added services towards ultimate customer satisfaction. Integrating men, technology, finances, information and material under one roof is the ultimate aim of SCM.

These definitions placed above are to guide you to understand the relationship between logistics and SCM and context. The common factor to all this is one has to go beyond the realms of traditional functioning to include and integrate external entities, customers & suppliers.