Introduction to Logistics and Supply Chain Management: What You Need to Know
There is so much to know about logistics and Supply Chain Management. Is there even some difference between the two?
- Does Supply Chain include Logistics?
- Are Logistics and Supply Chains the same?
- Is it a good career to pursue in 2023?
Let’s find out by taking a step back and break down the basics.
What is a Supply Chain?
A Supply Chain is when 2 or more parties linked by a flow of resources converge to meet and fulfill a customer’s request.
The primary source of revenue is expectedly the customer. The exchange of payments is just a fund exchange.
The prime role of a supply chain is to generate maximum value by doubling down what the customer pays and optimizing the total effort expended to deliver the same.
Total Value Generated = What customer pays – Total effort and resources invested
Difference between Logistics and Supply Chain Management
Put simply, Supply Chain is an end-to-end network of raw material suppliers, manufacturers, distributors, and customers.
The role of Logistics in Supply Chain Management is to take care of the effective to-and-fro movement of the finished goods between the point of origin and the point of consumption.
Important Facts that you should Know about Supply Chain Management
With the involvement of technology in the business world, the need for an advanced supply and manufacturing system has increased. The concept of SCM is diversely changing across all industries and companies. However, the need to implement excellent supply chain management exists for multiple reasons, such as maintaining company success with the customers and societal settings. Not only this, the presence of a supply chain management department helps the companies to plan for their disaster relief operations, medical missions, and cultural evolutions. This department comes in handy for the business industry to achieve operational efficiency.
In any industry, supply chain management is required. The theory of supply chain management can be applied to various factors such as customer satisfaction and the success of the company. The presence of this department also helps in managing the disaster at hand and improve the performance of the company overall. Because SCM organizations play a vital role, employers seeking the right talent in-house seek employees with decent SCM skills and knowledge. Supply chain management courses that deliver these cutting-edge skill sets are thus critical to business operations & success. Through a detailed education in supply chain management, an individual understands the various business processes in an organization.
Finance Online says that “Regardless of the pandemic, the global supply chain management market is set to grow at a CAGR of 11.2% from 2020 to 2027″.
Infrastructure: A Key Link in the Supply Chain
In this era of modernization of logistics and the Industry 4.0 revolution, the importance of logistics infrastructure is becoming crucial not only for the growth of the industry but as an economy as a whole. The health of global supply chain relies on the quality of the underlying infrastructure.
Logistical Infrastructure can be defined as facilities, institutions, technological and organizational structures, i.e., as the social and economic base for the operation of a society.
Logistics Infrastructure can be further classified into two parts –
- Hard Infrastructure
- Soft Infrastructure.
Hard Infrastructure may include manufacturing or assembling facility, warehouses, inland container depot or container freight stations, multimodal logistics parks, expressways, freight corridors etc.
Soft infrastructure refers to institutions, such as the education system, healthcare system, and basic information and communication technology services that are essential to the economy and the quality of life.
Impact of e-commerce growth
With the rise of e-commerce and the increase of “micro-package” deliveries to doorsteps, local logistics infrastructure from roads to cold-chain refrigeration to digital tracking have become ever more important. Infrastructure plays an important role in ensuring that supplies can get to where they are supposed to go.
Logistical infrastructure plays the role of an unsung hero in these intricate processes, the arteries of global trade that supplies us with the coffee we drink from Starbucks in the morning to the vaccines and medication we need, and the play-station consoles we prefer to order online.
Infrastructure investment is a critical factor to increase and spread out the participation in global value chains and the process, rejuvenate global trade and economic development.
Furthermore, developing global competitiveness will most appropriately make envisioned infra development as the backbone of the logistics & supply chain industry in 2022. The future of trade and supply chain has been on an exponential upward trend since globalisation.
It is a no-brainer to advance your career by pursuing a Masters’ degree in Logistics and Supply Chain Management if you were to prepare yourself for the relentless challenges and grow in today’s cut-throat competition to get that edge over your counterparts in 2022.
What are the Reasons to Study Supply Chain Management Courses?
- Job Growth: Logistics is a rapidly expanding field that is assumed to grow even at the height of the recession. According to the bureau of labour and statistics, it is predicted that the job growth in this field is going to grow between 2016 to 2026.
- High Pay: The jobs in this field promises a high pay scale to their employees. With the increase in demand for more and more professional supply chain managers and workers, these professionals land up having good career growth and decent pay scales.
- Relatively low barrier to entry: The minimum requirement to get a job in logistics is a bachelor’s degree, and sometimes even that is not required. Some of the logistics and supply department work profiles don’t even need a bachelor’s degree. Thus, making this job quite attractive for aspirants who want to pursue a career in this field from an early age. But a candidate with a proper degree in supply chain management has definite scope for getting higher position roles which a candidate with no education qualification will not get.
- Opportunities for Advancement: With an MBA in supply chain management, the aspirants have a chance to pave their way in this field from a young age. The working professionals can acquire a degree in MBA and upgrade their skills, enabling them to multiply. The upper management posts are easy to reach for these candidates with an MBA degree.
- International Travel: The professionals in these fields have high chances of travelling abroad due to work trips. The logistics field requires them to explore various global businesses. Aspirants who are willing to build a career in supply and logistics abroad should opt for MBA in supply chain management courses.
- Local Job Availability: If you have no interest in travelling abroad and working, this course is still beneficial for you. As in this field, the candidates can work locally because of numerous work opportunities within the country.
Aspirants looking for courses in supply chain management can opt for UPES CCE for its PG programme in logistics and supply chain management. Their course is one of India’s well-known supply chain management courses, which caters to aspirants looking for a career in logistics and related industries in India and abroad.
Let’s look at some of the Program Benefits of CCE-UPES:
The programs offered at CCE-UPES offers a conceptual understanding of various concepts and methods in Logistics and Supply Chain Management.
It also enables the candidates to develop the ability to implement project planning, costing, and optimization techniques. This course also enables the candidates to have a complete understanding of logistics and supply chain management in the industry.
Hence, if you are interested in logistics and supply management, you should opt for a course in MBA in Supply Chain Management. The demand for the profession will keep increasing in coming times, and thus, choosing a career in this field will be beneficial for the aspirants.
Is it a career worth pursuing in 2023?
Owing to the needs and demands in the new world post-COVID-19, there’s no reason for an industry like Logistics and Supply Chain to face any global downtime.
UPES CCE’s legacy of providing a global learning experience along with industry exposure to its learners in the field of Logistics and Supply Chain is undisputed. Apply Now for the Class of 2023-25!