Role of Logistic Management in Supply Chain Management and Distribution

Logistics is a critical enabler of connecting supply and demand resulting in a dynamic and a growing economy. With an estimated GDP of Rs.113.2 trillion in 2013–14 and over a 13 per cent spend on logistics, the Indian logistics industry is worth over Rs.14 trillion. (http://www.iimahd.ernet.in/) Delivering logistics solutions is getting increasingly sophisticated both due to customer requirements and supply side innovations especially driven by information technology. Challenges such as cost versus value focus, asset versus non asset-based positioning, business scope and scale, and service level and quality management are critical to the competitive advantage of logistics service providers. This paper outlines how logistic management helped organizations to reduce costs in their supply chains and supply networks. It is related how industries and forms are benefitted through supply chain management and e-business.