Session 1

Question 1

What is the difference between Logistics and Supply Chain Management (SCM)?

Answer 1

Logistics focuses on delivering the right product, in the right way, quantity, quality, time, place, cost, and carbon footprint. SCM manages the entire flow of materials, information, and finances across the whole value chain—from suppliers to customers.

Question 2

Define a Supply Chain.

Answer 2

A supply chain consists of all activities and services involved in moving a product from the ultimate supplier to the ultimate customer (including installation, repair, etc.).

Question 3

What is Supply Chain Management (SCM)?

Answer 3

SCM is the integrated planning and control of material, information, and cash flows across the value chain, aiming to:
* Improve customization
* Synchronize supply with demand
* Reduce inventory
* Make production more flexible

Question 4

What are the 3 key flows in supply chains?

Answer 4

Physical material flows, Information flows, Resource flows (finance, people, equipment, relationships).

Question 5

What is meant by the ‘network’ metaphor in SCM?

Answer 5

SCM involves both upstream and downstream relationships among a network of organizations, managing flows and value across this network to improve efficiency and customer satisfaction.

Question 6

What factors contributed to the evolution of SCM and logistics?

Answer 6

Falling product prices, Deregulation of transport, Emphasis on inventory reduction, Company structure changes (outsourcing), Productivity improvements like containerisation.

Question 7

What is containerisation and why is it important?

Answer 7

It’s the use of standard-sized containers (e.g., 20-foot TEU units) to transport goods efficiently across modes (ship, rail, truck), greatly boosting global trade.