Supply Chain Management

Dr. Abdulrahman M. Aljamouss

Assistant Professor, Business Development

Understanding What Logistics and SCM Are About

Council of SCM Professionals (CSCMP) Saied, when talking about evaluation of SCM's performance it is important to acknowledge that we have misunderstood. CSCMP acknowledged: “Most times, SCM is confused with the Logistics Management (LM)”.

Definitions of logistics and Supply Chain management

• Logistics According to (CSCMP’s)
  • “Logistics management is a part of SCM that plans, implements, and controls the efficient, effective, forward and reverse flow and storage of goods, and related information between point of origin and point of consumption in order to meet customers’ requirements.”
• Supply Chain management
  • SCM integrates all activities with:
  • Raw materials flow, transformation of raw materials into finished goods,
  • as well as information flows, and
  • Money flows, to achieve a Sustainable competitive advantage.

SCM integration

• Relationship Integration
• Measurement Integration
• Technology/
• Planning Integration
• Material & Service Supplier Integration
• Internal Operations Integration
• Customer Integration

The logistics function includes:

• Sourcing and procurement
• Production planning and scheduling
• Packaging and assembly
• Customer service

Logistics involves (the 7’S Right):

• Getting in the right way,
• The Right product,
• In the Right quantity 
• And Right quality,
• In the Right place 
• At the Right time,
• For the Right customer 
• At the Right cost 

Difference between supply chain and logistics

 Triple Flows of SCM

 Managing a SM is Not Easy

Evolution of Supply Chain Management

Objective of a Supply Chain

• Maximize profit .
• The best level of customer service
• The smaller investments in inventories
• The lower cost of production/acquisition
• The lower cost of distribution

Supply Chain Operations Reference (SCORM)