Logistics operations definition. Still have a question? Ask your own! Logistics is just one component of a supply chain . Logistics has to do with the coordination and movement of goods. Supply chain involves multiple facets such as operations and procurement that keep a company running smoothly. This is a great question, especially since these terms can be used interchangeably since their differences are subtle. There are a lot of great answers here (I especially like the pizzeria analogy by Michael Drucker ). The above picture is what we at TQS Logistics envision a supply chain to be. A complex network of stakeholders, processes and handshakes. This can be very different from one company to the next. For example a service based company is not going to rely on raw materials and manufacturing the way a retailer will, conversely the retailer won’t need the same software, training and information tools that a service based company needs. Logistics is defined as the planning, implementation, and coordination of the details of a business or other operation. Logistics is the details of a particular transaction, ie what time will the shipment arrive, at what door, etc. In a lot of cases logistics deals with timing, delivery of goods/service and who’s responsible within the supply chain. To me, operations , is a broad term like supply chain and presents itself different in every business. Operations are the repeatable processes that a businesses executes on a regular basis. For example, when a sale is placed a receipt is produced and the product is taken from the warehouse and shipped to the client. This is a very basic look at these definitions for more details, please check out my blog . promoted by SEMrush. In other languages. The three topics are related but distinct. As Amit said, logistics and operations typically fall under the umbrella of the supply chain management. In fact, the entire purpose of supply chain management is to act as a perspective through which one can understand, analyze, and optimize all of the internal and external activities of a business. When asked what supply chain management is, I often find it useful to tell people that it may be better understood as the management of the chain of supplies. And to further explain that it can even better be understood as the management of the flow of value. Operations management is the management of the activities that generate recurring value for the firm. Logistics management is making sure that everything is gets to where it needs to be when it is needed. Also valuable, is to make the concepts relatable. Imagine a pizzeria. A pizzeria's job is to take ingredients, turn it into pizza, and sell it to people that want pizza but aren't in a position to make it themselves. The operations of a pizzeria are all of the activities involved in making that happen. It is the process by which a business turns assets into profit. The procurement activities of a pizzeria are figuring out what ingredients, supplies, and equipment must be purchased in order to make that happen. The logistics activities of a pizzeria are all of the activities between uses. Someone needs to take the delivery inside, take inventory, ensure continuous refrigeration, and ultimately get that pizza into the customer's hands. The basic idea of the field of supply chain management is that throughout all of these activities, one can trace a chain ownership of these supplies and find ways to increase the flow and achieve greater efficiency for the business. I hope that my answer was helpful. It's my first time answering anything on here before.
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