Managing Supply Chain

Your organization must have an efficient flow of materials, people and information to support your processes. If you are a manufacturer, you bring in raw materials, information and services—and then deliver finished goods to customers; hospitals move patients, materials and other services. Logistics is the management function that is responsible for these movements.

The final product of one organization becomes the raw material of another, so your process forms one part of the complete supply chain. The Institute of Logistics recognizes this by defining logistics as ‘the time-related positioning of resources or the strategic management of the total supply chain.’ They also emphasize the focus on customers by saying, ‘The supply chain is a sequence of events intended to satisfy a customer.’ In common with most interest groups, the Institute likes to emphasize its strategic role, but in reality it involves a whole range of decisions that are vital to the success of your organization.

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