The concept of Logistics as defined in the past is no more sufficient to cover new incoming needs, therefore we are moving towards a concept of Integrated Supply Chain Logistics & Distribution.
We have defined our objective, that is ‘finds H solutions to W requirements‘, but we still need to identify what are the areas of influence to get these solutions.
In the consolidated model of B2B Supply Chain, Logistics looks after:
- Warehouse organisation
- Transport management
In an always more interconnected and integrated business approach, this model is no more sufficient to satisfy all incoming requirements.
It is therefore necessary to include under the Supply Chain the control of stock, to instantaneously react to incoming business needs (e.g.: store replenishment, cross channel transfer, delivery to end consumer from multiple points).
As in the classic model, also in this new approach the requirements regarding the Stock organization need to come from the business, while Supply Chain will put in place all the actions to optimize it.
But there is a relevant organisational difference between these three areas to be always duly considered; while Warehouse Organisation and Transport Management can be eventually outsourced, Stock Control is always an activity to be managed internally.