Logistics Management can mainly divided into two basic categories of Inbound Logistics and Outbound Logistics. It deals with the designing and controlling the process of production and bu… It also includes coordination and collaboration with supply chain partners, namely suppliers, intermediaries, third-party service providers, and customers. Procurement logistics consists of activities such as market research, requirements planning, make-or-buy decisions, supplier management, ordering, and order controlling. 4. A warehouse may fall under one of the three groups or types which are public warehouse, private warehouse and bonded warehouse. You know what procurement as well as logistics is, but what you may wonder about is how important these are from the perspective of a business organisation. There is big chance for employment if you are versed with procurement and logistics management. Procurement involves the selection of appropriate vendors who can produce or supply the goods and the ongoing maintenance of contractual terms for continuity of supply. 2) Procurement is Buying While Logistics is Organizing. Recommended: Webinar: The Power of Telematics in Logistics and Supply Chain Management. This is not an item stocked by local suppliers, if indeed there are any suppliers in the area. Procurement management is all of the processes that go into managing a company’s incoming material needs for manufacturing. Procurement management is a necessity for large companies. Swahili. The Impact of Technology – A Definition Dilemma? From the title, you know that the function pertains to the responsibility of overseeing the storage of goods. Logistics and Transport . Difference between Logistics and Transportation? Financial management in procurement involves the "management of all the processes associated with the efficient acquisition and deployment of both short- and long-term financial resources", as they relate to the procurement of goods and services (CIMA, 2005:90). Supply Chain Management (SCM) acknowledges all of traditional logistics and also includes activities such as marketing, new product development, finance, and customer service" - Michael Hugos Procurement Supply Chain Logistics and Transport. Describe the interdependencies of procurement with other functions in the organisation. usimamizi wa vifaa. If you will take a closer look at the warehousing component, you will deduce that this is connected to inventory and storage management and you are right about that. I’ve noticed that the two terms are sometimes used loosely, and while both obviously fall under the larger umbrella of supply chain management, it is sometimes difficult to figure out where logistics ends and procurement begins and vice versa. These Logistics Management MCQ will help students of MBA, MMS, PGDM, BBA, Bcom, Mcom and other management streams for exam preparation and concept learning. Logistics management results in cost reduction and profit maximization, primarily due to: 1. Logistics is a framework of business planning so that the materials, services, capital and information assets are properly managed. He holds degrees from Vanderbilt University and the University of Michigan Law School. View all. This post covers Logistics Management Multiple Choice Questions with answers. If … Safe, speedy and economical transportation . The responsibility includes fuel management and vehicle tracking systems that will prevent delivery delays and violations of government rules and laws. There's more logistics and work that is required when inventory management is included, but it can afford the procurement team more control over their actions. It is easy to define warehousing as a part of the logistics management. 3. Once you understand what these terms mean, you will be able to benefit from the many tips and services available to you when you partner with a third-party logistics (3PL) team in Toronto. Hop on to get the meaning of DPLM. This Logistics Management book is the fully revised version of the authors 2004 prize-winning 1 st edition. It is a broad function in which various activities are carried out sequentially to make the product/service available as per the company's request. What is supply chain management and what is the procurement process? Human translations with examples: mean modle, meaning pupa, meaning ryne. What Is Procurement and Logistics Management? Recommended: Webinar: The Power of Telematics in Logistics and Supply Chain Management. Meaning. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third party service providers, and customers. E-procurement is defined as an electronic method of conducting business transactions while e-logistics refers to the transfer of goods sold over the internet to customers (Botha, Bothma and Geldenhuys, 2008: p.24). Sourcing the items from your preferred supplier will take at least two weeks. A procurement supply chain person is directly responsible for the purchasing or procurement of any product (i.e. Procurement means buying goods/services for trading. Explain the perspectives on procurement in business management. Swahili. Answer #6 Logistics management has many things to track and resources to schedule. It deals primarily with the planning and transportation of goods from one location to another as demand requires. E-procurement is defined as an electronic method of conducting business transactions while e-logistics refers to the transfer of goods sold over the internet to customers (Botha, Bothma and Geldenhuys, 2008: p.24). Describe the interdependencies of procurement with other functions in the organisation. As soon as I see “logistics” I see a coordinating role that involves operations and possibly marketing, finance, and management. Procurement. Last Update: 2020-10-12 Usage Frequency: 1 Quality: Reference: Anonymous. All aspects of procurement, logistics and supply chain person is concerned with acquiring ( procuring ) the and... And again the logistic procurement officer ensures the organization works with competent and suppliers! 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