Practical work No. 1 in the discipline scm


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Abdullayeva Kamola


Practical work No. 1 in the discipline SCM
1. What is the difference between the concepts of "logistics" and "supply chain management"? (using the example of one company to schematically show the task).
2. List the main stages of the evolution of the concept
of supply chain management. Name the economic and innovative factors that contributed to the emergence and development of the concept of supply chain management. Give illustrative examples of the development of SCM in the economy of different countries.
3. Strategy and planning in the supply chain (using the example of one company to schematically show the task).

Registration of work -0.5 points;


Type of work (Word, Presentation, video) - from 0.1 to 1 points.
Solve the task -2 points;
Oral explanation - from 0.1 to 2 points.
The answer to each question is estimated from 0.5 points.
Abdullayeva Kamola 120-19

1.Supply chain management outlines the strategy and activities that go into planning, sourcing, producing and delivering goods, as well as handling returns. Logistics focuses on the right products being in the right place at the right time, and how to get them there.


Key Differences Between Supply Chain Management and Logistics
As should be clear at this point, supply chain management and logistics definitely intersect, but they differ when it comes to their scope and focus.
Key differences between SCM and logistics include:

  • Logistics are activities in supply chain management. SCM covers a variety of activities, including production and inventory planning, labor planning, materials and facilities management, manufacturing and delivering goods and services.

  • SCM works toward improving processes to create competitive advantages, while logistics emphasizes meeting customer needs and expectations.

  • Logistics focus on the efficient and cost-effective delivery of goods to the customer.

  • Supply chain management controls the development of raw materials into finished goods that move from the supplier to producer to warehouse to retailers and/or consumers.

  • The term logistics originated with the military. Many historians credit Alexander the Great, born 356 B.C., as a logistics master.

  • The modern practice of supply chain management started in the 20th century. Many experts credit the logistician Keith Oliver as the person who coined the term supply chain management in the early 1980s.

2.
The evolution of supply chain management has been characterized by increasing integration of separate tasks; a trend underlined in the 1960s as a critical area for future productivity improvements since the system was highly fragmented. Although logistics tasks have remained relatively similar, they initially consolidated into two distinct functions related to materials management and physical distribution during the 1970s and 1980s. This process moved further in the 1990s as globalization incited functional integration and the emergence of logistics in a true sense. All the elements of the supply chain became part of a single management perspective.
However, only with information and communication technologies did a more complete integration became possible with the emergence of supply chain management. It allows for the integrated management and control of information, finance, and goods flows, making possible a new range of production and distribution systems. Supply chain management has become a complex sequence of activities aiming at value capture and competitiveness. More recently, the growing level of automation of supply chains has been a dominant element in the evolution of both physical distribution and materials management. This digitalization is particularly notable within distribution centers that have experienced a remarkable push towards automation, such as storage, materials handling, and packaging. Automation may eventually lead to automated delivery vehicles.
Stepwise and according to improvements in information and communication technologies, the two ends of the assembly line became integrated into the logistics of the supply chain. High rack storage, which later became automatically driven, or the internal movement of packages by flat robots were early expressions of logistical engineering. Initially, logistics was an activity divided around the supplying, warehousing, production, and distribution functions, most of them being fairly independent. With the new organization and management principles, firms followed a more integrated approach, thus responding to the upcoming demand for flexibility without raising costs. At the same time, many firms took advantage of new manufacturing opportunities in developing economies through outsourcing and offshoring. As production became increasingly fragmented, activities related to its management were consolidated. Spatial fragmentation became a by-product of economies of scale in distribution.
3. There are three phases to creating a supply chain strategy:

  • Supply chain strategy design – at this stage, you will decide the company’s strategic objectives and KPIs. You should also review and choose suppliers, decide where to locate warehouses and whether to implement software throughout the supply chain.

  • Supply chain strategy planning – if you understand your strategic objectives, you will be able to plan how to balance supply and demand. This will ensure that you have the right goods, at the right time, and in the right place to meet customer demand.

  • Supply chain strategy execution – this is where inventory teams will manage warehouses and inventory levels to ensure the company can meet customer demand.

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