1) Discuss the interface between Purchasing and Supply Management and Logistics Management - specifically with respect to selection of a third party logistics provider, analysis of the total cost of ownership, use of e-procurement capability, integration of the transportation (in-coming and out-going) spend, and management of just-in-time inventory control.
2) How do Purchasing and Supply Management and Logistics Management "fit" within the framework of distribution management - particularly control of in-process and finished goods inventory?
Logistics management is the part of supply and purchase management. Logistics management is responsible for organizing the products and services that are being offered from the point to point origin of consumption. Supply and purchase management is focused towards ensuring that demands of customers are adequately met. Logistic management manages all the material flow and identifies the overall time involved in offering the products to customers. In case of a third party logistic provider, the warehouse creates the link between the purchasing and supply management and logistics management.
In case of cost of ownership, purchase and supply management analyzes the overall cost of purchasing the resources. Further, logistics management manages the appropriate flow of purchased materials through the manufacturing process. Purchasing and supply management is the process of managing the activities involved in sourcing and procurement. It is also focused towards managing the logistics in the organization (Wanke, Correa & Hijjar, 2010). At the same time, logistic management includes the management of warehousing, transportation, just in time inventory, etc. thus, organizations have to create the link between the logistics management and purchasing and supply management.
With the help of ...
Logistics management and procurement and supply management is examined.