Compvantages And Differences Between Supply Chain And Logistics Management

The term logistics is originally from the military, which consist by the supply of necessary items for national defence. Till 1960s this term was started to be used in the business and management area, it mainly was used to describe the physical distribution. During the development of the management science and technology, during 1970s to 1980s, logistics had more functions, includes the inbound and outbound logistic which separately support manufacturing, with materials management and marketing with physical distribution (Coyle, Langley, Novack). In the 1990s, logistics had been defined as a process which includes the controlling of goods, and information from start point to end customer requirement. It also includes inbound, outbound, internal

According to the research of Rhonda, Dennis and Robert (2001), on common understanding in the related area, logistics is a process to plan and control goods or services resources from the start point of the resource to the final consumer in order to meet their requirement; and the process is considered to include inbound, out bound, internal and external movements and reserve movement of the raw materials and finished products.

In conclusions, logistics management is the control of the material flow in practises, which using planning, implementing to make the flow and storage of goods and services from start to end of the chain efficient and effective, in order to meet the consumer requirement Rhonda, Dennis and Robert (2001) .

Logistics productivity

This decline is possibly related to the deregulation of transportation in early 1980s and the development of inventory level management. Coyle et al. (2012) mentions that from 1985 to 2006, nominal GDP and the value of all business inventories both had an increase of 212.3% and 119.2%. Saving cost on inventory management could add value to inventory itself, so the productivity improvement of logistic could bring growth to the economy by add value to the products. Purchasing profit leverage effect can also support this point of view, because the decrease on purchasing cost will directly go into the net