Critically Discuss the Role of Supply Chain and Logistics Management in the Context of Your Business Organisation or Any Organisation You Are Familiar With

Supply Chain Management

BAM302

Critically discuss the role of supply chain and logistics management in the context of your business organisation or any organisation you are familiar with.

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Initial statement

This assignment is based on an interview I made to Mr Anthony Pule’ who is the General Manager of ‘MB Distribution Limited’. The company apart from managing its own Supply Chain with its own logistics processes is also part of a wider supply chain since it forms part of a broader supply chain of other suppliers overseas. My assignment is going to be focused on the period from the importation stage of the company’s goods until the merchandise reaches the client. The interview was done in the last month but from my behalf, I already knew some of the processes of its supply chain since I am a retailer who sells the company products. Therefore my business is also part of MB Distribution supply chain. Although the company has also its own retail shop, I am going to omit this part and analyse only on the procurement, storage and distribution of goods. The phrases ‘Supply Chain Management’ and ‘Logistics Management’ are being abbreviated as ‘SCM’ and ‘LM’ throughout the essay for the ease of the reader.

Introduction The assignment initiates with different definitions by different authors and their perspectives about SCM and LM. Moreover different views and perspectives of authors and scholars are assessed and contrasted between them. Later on, it is described how the selected company describes SCM and LM and how these concepts are applied to the strategy of the organisation. Finally, it is concluded by giving an overall view how the organisation links with the theories of SCM and Logistics Management.

Definitions and Perspectives of Supply Chain and Logistics Management

Nowadays the term of SCM is being widely accepted. It is defined as the processes adopted together by firms to that bring services / products to the market (Lambert, et al., 1998). Martin Christopher (2011) was more specific and customer oriented in his definition and described SCM as a network of organisations in changeable streams and processes that give a value to the products that reach the customers.

Academics and scholars state that the significance of supply chain management has been increasing year after year and today the competition is no longer of an organisation versus another organisation but has become more of a competition between firms to achieve the most efficient and well-managed supply chain (Alfalla Luque & Medina-Lopez, 2009). On the other hand, others argue that SCM is nothing new but just a new word in the field of logistics. The Council of Supply Chain Management Professionals (CSCMP) formerly known as the Council of Logistics Management has defined logistics as the method of organising and managing well the required information, and adjusting where required the processes to have an efficient process flow in inventory management and distribution. All this must be implemented according to the customers’ request (Council of Logistics Management, 1998). Logistics and supply chain management are linked and logistics is part of the SCM that plans, creates and monitors the efficiency of movement and storing of products between the point of origin and the point of consumption to meet customers’ needs (PCSCM, 2007).

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The opinion of those who do not find any difference between SCM and LM is that every new book about logistics, has a different SCM definition and this is ‘absurd’ because SCM is not a new theory or scientific field. It is just the evolution of LM and new theories about SCM are not required (Enarsson, 2009).Day, Burnett, and Forrester (1999) in a study conducted, state that the theory of SCM has inherited a lot of different meanings with the consequence that there is a broad misunderstanding to find a general agreement to describe correctly the management of the supply chain. SCM can also be regarded as a description of a long list of business activities like simple economics, geographical economics, industrial economics, marketing and industrial sociology. Since it includes everything in organisational business it is almost impossible to find a meaningful definition (New, 1994).

Those who believe that management of Supply Chain and Logistics differ from each other, argue that LM is only a small part of SCM and LM has fully evolved while SCM is a modern subject field (Bagal, 2015).Others argue that the objective is also different.While that of logistics is customer satisfaction (Gandy, 2014) that of SCM is to gain competitive advantage (Bratic, 2011).

After assessing different