Overview of logistics industry and supply chain management 9...91.1.1.. Thanks to your instructions, we have gained a better understanding of the role and importance of the logistics and
OVERVIEW OF THEORETICAL BASE
Overview of logistics industry and supply chain management 9
The term "logistics" originates from the ancient Greek word "logistikos", meaning the art of calculation Initially, it was used in the military context, referred to as "logistics", meaning providing necessities from the rear to the front line The Oxford English Dictionary defines logistics as a branch of military science dealing with the procurement, maintenance, and transportation of materiel, personnel, and equipment Other dictionaries define logistics as the timely and efficient arrangement of resources.
Logistics is increasingly applied in various economic sectors globally to address the issue of economic efficiency as human needs grow but resources and raw materials for production are limited Therefore, logistics services have been and are developing strongly to serve business activities for optimal efficiency, producing products with the best quality and the least cost.
The essence of logistics activities is the integration of management activities of the flow of goods and materials from the place of production to the place of consumption and to the hands of consumers In the chain of activities of logistics services, transportation is the main business activity, so sometimes some people
9 believe that logistics is a goods transportation activity, a multimodal transportation type.
According to the United Nations, logistics is the activity of managing the movement of materials through storage, production into products, and to consumers according to customer requirements.
According to the Logistics Management Council, logistics is a part of the supply chain process that includes planning, organizing, implementing, controlling, and monitoring the efficient movement and storage of goods, services, and related information from the point of origin to points of consumption to meet customer requirements.
From the WTO's perspective, Logistics is defined as a service supply chain, including planning, implementing, and controlling the movement and storage of goods, services, and related information from the place of production to the place of consumption to meet customer requirements Traditional logistics services include transportation, warehousing, forwarding, and third-party value-added services (such as working according to customer requirements).
According to the previous terminology, the Law on Commerce in 1997 of Vietnam called logistics services as freight forwarding services and was regulated as follows: "Freight forwarding service is a commercial act, in which, the freight forwarder receives goods from the sender, organizes transportation, warehousing, storage, paperwork, and other related services to deliver goods to the consignee at the request of the cargo owner, the carrier, or another freight forwarder (hereinafter referred to as the customer)".
In the Law on Commerce in 2005, for the first time, Vietnamese law included regulations on logistics services in legal documents, according to Article 233 of the Law on Commerce in 2005:
"Logistics service is a commercial activity in which a trader organizes and performs one or more tasks including receiving goods, transporting, storing, storing, clearing customs, other paperwork, consulting customers, packing, coding, delivering goods or other services related to goods as agreed with the customer to receive remuneration".
With many concepts as above, logistics services are understood in a broad and narrow sense as follows:
In the narrow sense, logistics services are associated with the entire process of importing raw materials and materials as input for the production process, producing goods, and putting them into distribution channels to reach the final consumer.
In a broad sense, the essence of logistics services is to gather support factors for the process of transporting products from the place of production to the place of consumption.
Thus, the concept of logistics services in Vietnam is understood in a narrow sense, considered to be similar to a freight forwarding activity However, it is also necessary to recognize that the definition in the Law on Commerce in 2005 is open, which is the regulation: "or other services related to goods" Accordingly, in addition to the services listed in the law, traders can also do business in other services related to goods that can also belong to logistics service business.
A supply chain is a system that links businesses from the production, processing, and packaging stages to distribution and final consumption It includes
11 all activities and processes involved in the production and distribution of a product from raw materials to the end customer It is a network of companies and organizations that work together to produce and deliver goods and services to customers The supply chain is one of the most important concepts in business today and has a major impact on the development and competitiveness of businesses.
A complete supply chain is built from many different parts All of these parts work together to get a product from the raw material supplier to the end customer Specifically, a supply chain consists of 5 basic components: raw material suppliers, manufacturers, distributors, retailers, and customers.
Raw Material Suppliers: These are the entities that provide the raw materials to produce the finished product Raw material suppliers play an important role in the supply chain, as without raw materials, it is impossible to produce the final product.
Manufacturers: The manufacturer is the entity that produces the finished product from the raw materials provided by the raw material supplier The manufacturer plays an important role in converting raw materials into finished products.
Distributors: After the finished product is manufactured, the distributor will be responsible for distributing the product to retailers Distributors play an important role in creating the link between manufacturers and retailers.
Retailers: These are the entities that sell the finished product to the end customer Retailers will buy the product from the distributor or manufacturer and sell it to individual customers Retailers include convenience stores, supermarkets, and grocery stores.
INFORMATION COLLECTION AND PROCESSING METHODS
Information processing
Data processing is the method of collecting raw data and converting it into usable information After collection, data undergoes filtering, sorting, processing, analysis, storage, and is then presented in a readable format.
Information processing has the role of analyzing and interpreting data to help you understand problems and make informed decisions Effective information processing involves many steps, including organizing and structuring data, identifying patterns and trends, and drawing meaningful conclusions.
Through different sources of information, we will have a lot of information and from there, arrange and select the information and choose the appropriate information source to gather the necessary information for us.
ACHIEVED RESULTS
Similarities and differences between logistics and scm
3.1.1 Supply chain management versus logistics
Supply chain management encompasses the high-level processes involved in sourcing, purchasing raw materials, and ultimately creating finished products Supply chain management uses Logistics services to deliver goods to consumers, and functions to boost profits and increase a business's competitive advantage In other words, supply chain management sets the strategy and directs the day-to-day Logistics activities that take place in factories, warehouses, local shipping centers, and other facilities.
Logistics is the part of the supply chain that stores or delivers finished goods or services to a customer, whether a manufacturer, distributor or consumer The goal of Logistics is to get goods and services to customers on time and at competitive prices.
3.1.2 How are supply chain management and logistics similar?
Both supply chain management and logistics focus on the flow of goods from the point of origin to the end point Both operations require careful coordination of supplies, labor, and facilities to ensure items can move through the supply chain as required Logistics is an important component of supply chain management, but is only one part of the process.
Supply Chain Management and Logistics both work to move, store, and deliver goods as efficiently as possible Supply chain management provides strategic direction that guides inbound and outbound logistics.
Some similar aspects of Supply Chain Management and Logistics are:
Both focus on goods, services or information.
Both have the ultimate purpose of supporting the company's success and differentiating it from its competitors.
Both seek to increase customer satisfaction.
Both revolve around the same flow of goods and services, from supplier, to manufacturer, to wholesaler and finally to retailer or consumer.
3.1.3 How are supply chain management and logistics different?
Supply chain management outlines the strategy and activities involved in planning, sourcing, manufacturing and distributing goods, as well as handling returns.
Logistics focuses on getting the right products to the right place at the right time and how to get them to their final destination.
3.1.4 The main differences between logistics and supply chain management include:
Logistics are activities in supply chain management Supply chain management includes a variety of activities such as production and inventory planning, labor planning, materials and facilities management, production and delivery of goods and services.
Supply chain management works towards improving processes to create competitive advantage, while Logistics emphasizes meeting customer needs and expectations.
Logistics focuses on efficient and cost-effective deliveries to customers.
Supply chain management controls the process of developing raw materials into finished goods, moving from suppliers to manufacturers, to warehouses, to retailers and/or consumers.
Benefits and effects of certificates
When Logistics businesses open, employers will not simply look for workers to work for them, but the deeper purpose is to find high quality talents Therefore, the job requirements of the day are very high and they also require their candidates to provide the certifications they desire This will help them have access to large and quality human resources to work in the business.
Expand knowledge and improve professional capacity: provide professional knowledge and skills in the field of Logistics and supply chain management Certificate holders will have an understanding of import and export processes, international laws related to Logistics, transportation contracts, supply chain management and aspects related to freight transportation.
Has global value to help reach international level: This is an internationally valuable professional certificate recognized by business associations and organizations around the world and highly appreciated by recruitment experts You will have many advantages such as interning at large companies and corporations, participating in the Vietnam Logistics network and having the opportunity to work at Logistics and freight companies around the world.
Build relationships and networks: have the opportunity to meet and interact with leading experts in the Logistics industry, creating opportunities to build a network of relationships and open doors for career development in the industry. You can learn from the experience of reputable people in the field of Logistics and supply chain, establishing links with important companies and organizations in
23 the industry This not only expands career opportunities, but also helps you learn and develop yourself.
Introduction to the system of international certifications in logistics and
The CSCP certification is the first globally recognized certification in supply chain management CSCP certification covers not only internal operations but the entire supply chain, from suppliers, throughout the company's activities and activities with customers.
CSCP – Certified Supply Chain Professional focuses on mastering the extended supply chain – beyond the internal operations from an organization's suppliers to customers Ultimately helping businesses maintain competitiveness in today's economy.
Increase confidence in supply chain management Master the skills needed to bring new ideas to suppliers, factories and ultimately distributors At the same time improve customer satisfaction.
With CSCP Certification, personnel will have the appropriate knowledge and experience to effectively manage global supply chain efforts And implement the concepts and strategies needed to improve daily operations.
The CSCP certification is useful for those working in the field of Logistics and SCM, including supply chain managers, warehouse managers, transportation managers, and many other positions related to supply chain management It helps provide the knowledge and tools needed to understand and optimize the supply chain management process.
To be able to study and obtain a CSCP certificate, you need to have at least 3 years of business experience, a bachelor's degree or valid CPIM, CLTD, CPSM certificates.
CSCP certificate is a certificate certified by the ASCM association.
Association for Supply Chain Management (ASCM) is the world's leading association for transformation innovation and leadership in supply chain organizations ASCM is built on the APICS training and certification foundation with a history of more than 60 years, making it the largest non-profit supply chain association.
ASCM's mission is: “To advance the advancement of end-to-end supply chain management through the totality of knowledge, innovative research, systems and methods to create value for customers, members and organizations position.” ASCM trains APICS programs such as CSCP – Certified Supply Chain Professionals, CPIM – Certified in Production and Inventory, CLTD – Certified in Logistics Transportation and Distribution, SOCR-P – SCOR Professional In addition, the association connects supply chain professionals and companies worldwide with the latest thought leadership across all aspects of the supply chain Today, the association is driving innovation in the industry with new products, services and partnerships that enable companies to further optimize their supply chains, ensuring a competitive advantage and increase profits.
Activities of ASCM – Association for Supply Chain Management:
Academic training & development of APICS programs
Research, supply chain reports, The Journal of Operations Management, The Transportation Journal and professional documents
ASCM Humanitarian Fund (education, training, health, community activities, etc.)
International freight forwarding management is an activity that plays a key role in the global logistics service chain to meet the trend of international economic integration Therefore, this certificate brings many benefits that any logistics worker desires.
Thus, FIATA certification is a standard for assessing an individual's abilities in the field of transportation and delivery of goods, including knowledge of delivery processes, laws and transport contracts, and supply chain management transportation insurance, and many other aspects related to the operation of the international shipping industry.
FIATA certification is considered an international standard and has global value, helping to supplement knowledge for new students equivalent to employees with 4 to 5 years of experience, narrowing the quality gap human resources in international freight forwarding and transportation activities.
There are 2 programs in FIATA certification: International Certificate in International Freight Forwarding (FIATA Diploma In International Freight Forwarding); International Certificate in Supply Chain Management (FIATA Higher Diploma in Supply Chain Management) The diplomas "FIATA Diploma in International Freight Forwarding" and "FIATA Higher Diploma in Supply Chain Management" will be issued directly by the FIATA Federation after receiving the student's completed documents from the teaching unit.
The two degrees mentioned above are international degrees Recognized by associations and businesses worldwide and highly appreciated by employers It can be said that this is an indispensable ticket for potential employees to reach international level.
FIATA – The Federation of International Freight Forwarders Associations' official name in English is "International Federation of Freight Forwarders Associations".
Founded in Vienna, Austria (1926) and headquartered in Geneva, Switzerland
As the world's largest organization in freight forwarding, it represents more than 40,000 forwarding and logistics companies.
FIATA is a non-governmental organization representing freight forwarding organizations/enterprises in about 150 countries with the main task of forming professional standards and improving management capacity FIATA is undertaking the duties of a consultative body for the United Nations Economic and Social Council (ECOSOC), the United Nations Trade and Development Organization (UNCTAD) and the United Nations Commission on Commercial Law International (UNCITRAL) This organization is constantly developing and innovating in accordance with the general development of the international freight forwarding and logistics industry.
SCPro is a certification from the CSCMP Supply Chain Management professionals association This certification validates an individual's ability to analyze case studies, identify organizational challenges, develop improvements to supply chain operations, and execute project plans achieve strategic results SCPro includes three levels that assess knowledge and skills advancement in integrated supply chain operations.
Level 1: requires a college degree or four years of professional experience in supply chain management.
Level 2: Analysis and Application of Supply Chain Challenges – requires a level 1 certification as well as a university degree and three years of professional experience or seven years of experience in supply chain management.
Level 3: SCPro Level Three: Initiation of Supply Chain Transformation- requires level 1 and level 2 certification, university degree, five years of professional experience or 9 years of supply chain management experience.
SCPro certificate is a certificate of the CSCMP organization
The CSCMP organization was founded in 1963, the Council of Supply Chain Management Professionals (CSCMP) is the preeminent professional council of supply chain management professionals worldwide CSCMP has the following goals:
• Connect supply chain professionals to collaborate, enhance their supply chain leadership skills and support lifecycle career development.
• Confirm professional competencies through certifications and professional development.
• Identify and conduct research that adds to the knowledge base of supply chain theory and practice.
• Create awareness about the importance of global supply chains to business and the economy.
CSCMP's mission is: “Advancing the supply chain profession by connecting, educating and developing the world's supply chain management professionals throughout their careers”
Understand more about cscp certification
3.4.1 Why should you get cscp certification
CSCP certification is necessary for you if
You are interested in improving your knowledge and expertise in the field of Global Supply Chain Management, especially in the areas of customer relations, international trade, information technology support, and import and export password.
Consulting on building supply chain systems or implementing technology systems in the supply chain such as ERP.
Establish a common standard of words, concepts, and framework for the company to unify language and create conditions to solve existing problems in the company's supply chain.
3.4.2 What does a cscp certificate do for you?
Master the tools needed to effectively manage global supply chain operations, including suppliers, factories, distributors and customers globally
Acquire the skills needed to create consistency and best collaboration through practices, common terminology, and corporate communications
Understand how to utilize enterprise resources through ERP systems and other technologies to improve the entire supply chain process
Maximize your multi-million dollar organization's ERP investment Increase your professional value and secure your future.
3.4.3 Benefits of getting cscp certification
Enhanced knowledge and skills: Through rigorous training and testing, the certification process will improve your supply chain management knowledge and abilities.
Increase career opportunities: Your experience and dedication to the field are demonstrated through certification, which can open up more options to advance your career.
Competitive advantage: A competitive advantage over other candidates in a highly competitive job market can come from certification.
Industry Recognition: Supply chain professional certification is recognized around the world, showing employers and business professionals that you are competent.
Increased earning potential: Certification can lead to higher salaries, compensation packages as it demonstrates your value and expertise in the field.
Continuing education: Continuous learning is necessary to maintain certification, ensuring you stay up to date with trends and advancements in supply chain management.
Plan and implementation strategy to achieve the certificate
Step 1: Learn in detail about the requirements to take the Certified Supply Chain
Professional (CSCP) exam of the APICS certification organization.
Step 2: Make sure you understand the registration process, curriculum, and required knowledge capabilities.
Step 3: Complete the practice test to identify your current knowledge and identify areas for improvement.
Step 4: Determine your study schedule, including the time and resources needed to prepare for the exam.
Step 5: Consider taking formal courses or self-studying based on APICS materials.
Select and use official learning materials specifically designed for CSCP.
You may need to attend classes or self-study depending on your personal preference.
Build a study path from start to exam:
Focus on learning the theory and practice of the knowledge required for the CSCP exam.
Use learning materials and related references.
Build a specific study plan that includes time and resources.
Make sure you have enough time to review and take practice tests.
Use references from ISM and other sources to prepare for the exam.
Make sure you understand the required knowledge.
Apply knowledge to practice through projects and exercises to reinforce knowledge.