Information Technology in Logistics and Supply Chain Management

Logistics covers the activities of inventory management, order processing, warehouse and handling, and physical distribution. SCM is the design and operation of the physical and managerial systems needed to transfer goods and services from vendor to customer in an efficient manner. While logistics may be a function, SCM may be a process involving entire commercial activity.

The concept of SCM is deep-rooted more than three decades old and has passed three phases.

SCM Phase 1: Physical distribution management: It gave a changeover/push to inventory management as during those times manufacturers were seen as a separate entity cut off from the process cycle, and similarly the output was contained separately in the form of warehouses.

SCM Phase 2: logistics management Integration: Sales, manufacturing, and other departments worked as separate entities within an organization till the second phase of Supply Chain management occurred. This phase recognized the importance of integrating operations within the organization like sales, procurement, manufacturing, warehousing, distribution, and transportation to realize an efficient and effective goods distribution system.

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