The current period of development of a market economy is known for an increase in interest in logistics and supply chain management. The external circumstances in which logistics operations are executed is continuously changing the influence of market alterations and competition conditions. To adequately respond to these changes, any company needs a procedure for the systematic planning, design, and reengineering of the logistics system (Copacino, 2019). A new direction is actively evolving in the project logistics of a global format – supply chain management.
The term “supply chain management” has been widely used for more than 15 years. Still, so far, there is no final decision among the specialists in logistics and general management tied to the definition of this concept. According to Christopher (2016), it is “the management of upstream and downstream relationships with suppliers and customers to deliver superior customer value at less cost.” The efficacy of logistics activities in the supply chains and their participants is influenced by the so-called risks.
These risks include transportation, warehousing, cargo processing, inventory management, and the dangers of logistics management that arise at different levels of the logistics system (Davis & Sullivan, 2017). A specific risk structure corresponds to the supply chain of particular goods or to a participant, which is established depending on the logistic tasks executed and the scale of activity.
In conclusion, supply chain management is associated not only with maximizing output, capacity, and profitability of individual business unit, but also with advancing the entire system to achieve higher quality of service at lower costs. Overall, the topic of SCM is relevant to those who are interested in logistics system and transportation of goods. The resources in this essay were very useful with regards to providing the main idea and understanding of SCM. The subject in this article is relevant and it has practical and theoretical significance. The authors’ contribution to the general development of the supply chains study has made it easier for the readers to understand the main concept of SCM.
References
Christopher, M. (2016). Logistics & supply chain management. Harlow: Pearson.
Davis, J., & Sullivan, J. (2017). Supply Chain Risk— What Is It? Defense AT&L, 15–18.
Copacino, W. C. (2019). Supply chain management: the basics and beyond. Routledge: Taylor & Francis Group.