The logistics model covers a segment of the supply chain, and its management has specific functions. A logistics manager is responsible for planning, developing and controlling the complete product flow. He also oversees product delivery to customers and the reception of returns from them, as well as warehouse organization and unit control. A logistics manager’s tasks include managing personnel via direct collaboration with Human Resources.

The supply chain model is based on a wider scope. In this business cycle, management optimizes the whole process through the development and control of planning, supplying, manufacture scheduling, warehousing and distribution. The supply chain manager’s objective is to achieve maximum efficiency through the coordination of each of the steps that comprise the cycle. Cost reduction, minimal returns and effective distribution are part of the complex set of functions that she must see as a whole.

The relationship between clients and suppliers has changed under the new supply chain model. In order to be really effective, the supply chain manager should go to a second level of control. This means that he has to coordinate each step and have the chance to control the right process flow since he can’t limit his field of action to just clients and suppliers alone. He must also ensure the timely delivery and quality of his supplies. At the same time, he must ensure that his affiliates fulfill their commitments to his brand by effectively delivering quality service to the end user.

New relationships with customers and suppliers are unthinkable without precise organization. To achieve this, companies must invest in the development of the appropriate software to fulfill their needs. Some necessary tasks for supply chain processes include electronic exchange of documentation, purchase orders and invoices. Suppliers should use an effective Intranet service to order and track the delivery and update of inventories.

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