Module 1: Introduction to Logistics & Supply Chain

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Introduction

In today’s world, no business, NGO, or government project can succeed without moving goods, services, or information efficiently. This is where Logistics and Supply Chain Management (SCM) come in. These two terms are often used together, and while they are closely related, they are not exactly the same. To fully understand how organizations work, and how jobs in procurement and operations are structured, we must understand the difference and relationship between the two.

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What is Logistics?

Logistics is about planning, implementing, and controlling the movement and storage of goods, services, and information between two points — from where they start to where they are needed.

In simple words, logistics is how things move. It answers questions like:

• How will the goods be transported?

• Where will they be stored?

• How do we make sure they arrive on time and in good condition?

Examples in Malawi:

• Delivering farm inputs (like fertilizer and seeds) to rural farmers through the Affordable Inputs Programme.

• Coca-Cola delivering soft drinks from its factory to shops in Blantyre, Lilongwe, and Mzuzu.

• NGOs delivering food aid to flood-affected areas.

These activities require trucks, warehouses, delivery schedules, and people to coordinate them — that is logistics.

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What is Supply Chain Management (SCM)?

Supply Chain Management is broader than logistics. It is the end-to-end coordination of all activities involved in producing and delivering a product or service. It starts from sourcing raw materials, through production, storage, transport, and ends with delivering the final product to the customer.

SCM focuses on building strong relationships and ensuring all parts of the chain work together efficiently. It includes:

• Procurement (buying raw materials or supplies).

• Production (turning raw materials into products).

• Logistics (transport and storage).

• Distribution (getting products to customers).

• After-sales services (customer support, returns).

Example in Malawi: The supply chain for fish farming:

1. Fish feed is imported from Zambia.

2. Farmers buy it and feed the fish.

3. Fish are harvested and transported to markets.

4. Shops sell fish to customers.

5. Unsold fish may go to processing factories for freezing or packaging.

Here, logistics is only one part — the transport and storage — but the supply chain covers the whole journey from feed to the consumer’s plate.

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Key Difference

• Logistics = Movement & storage of goods.

• Supply Chain Management = Big picture of sourcing, production, logistics, and customer delivery.

In short, logistics is inside supply chain management.

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Practical Activity

Think of a product you used today — maybe bread, sugar, or cooking oil.

1. Write down where it might have started (farm, factory, or import).

2. List the steps it passed through before reaching you.

3. Identify which part was logistics (transport/storage) and which part was supply chain (sourcing, production, distribution).

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Conclusion

Logistics and supply chain management are the backbone of modern business and development. Logistics ensures goods move smoothly, while supply chain management ensures the whole process — from raw materials to customer — works as one system. Understanding the difference will help you see how organizations function and where your skills can fit in.

Introduction

Every organization — whether a shop, a factory, an NGO, or a government department — depends on moving goods, information, or services from one place to another. This movement must be efficient, reliable, and cost-effective. That is why Logistics and Supply Chain Management (LSCM) is not just a business function, but a backbone of economic development and service delivery. In this lesson, we will see why LSCM is important in three main areas: business, NGOs, and government.

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1. Importance of LSCM in Business

For businesses, the main goal is to make profit and satisfy customers. LSCM helps businesses achieve this by:

• Reducing Costs: Good logistics means cheaper transport, less wastage, and reduced storage costs. For example, Shoprite or Chipiku can keep prices lower by managing their supply chains efficiently.

• Improving Customer Satisfaction: Fast and reliable delivery keeps customers happy. Imagine a bakery that always delivers bread on time — people trust it more.

• Competitive Advantage: Businesses that manage their supply chains better can beat competitors. In Malawi, local poultry farmers who organize reliable feed supply chains often produce cheaper and healthier chickens than disorganized farmers.

Without strong LSCM, businesses risk empty shelves, delays, high costs, and unhappy customers.

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2. Importance of LSCM in NGOs

NGOs usually focus on service delivery, not profit. They depend on donors and must use resources effectively. LSCM is critical for them because:

• Timely Aid Delivery: During disasters like floods or cyclones, NGOs must deliver food, blankets, and medicine quickly. Poor logistics can mean people suffer or die.

• Cost Efficiency: Donors expect accountability. If transport is poorly managed, money is wasted, and the NGO may lose donor trust.

• Reputation & Trust: NGOs that deliver aid efficiently (e.g., World Vision, Red Cross) are respected and attract more donor funding.

For NGOs, logistics equals lives saved. Without effective LSCM, projects fail, and vulnerable people are left behind.

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3. Importance of LSCM in Government

Government plays a role in both service delivery and national development. LSCM supports government in the following ways:

• Public Service Delivery: Programs like the Affordable Inputs Programme (AIP) or vaccine distribution rely on logistics. Poor LSCM causes delays, corruption, and wastage.

• National Security & Stability: Defense and disaster management also rely on strong supply chains — food reserves, fuel storage, and emergency supplies must be well managed.

• Economic Growth: Roads, railways, and border systems are part of logistics infrastructure. Without them, businesses cannot trade effectively. Good LSCM policies help create jobs, attract investment, and stabilize markets.

When governments neglect supply chains, citizens face shortages, high prices, and weak services.

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Practical Activity

Choose one example in Malawi (a supermarket, an NGO project, or a government program). Ask yourself:

1. How does logistics and supply chain management affect its success?

2. What problems would happen if LSCM was poor?

Write down your answers — this will help you see how LSCM is practical in daily life.

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Conclusion

LSCM is not just a technical subject; it is a life-changing function that affects businesses, NGOs, and governments. For businesses, it means lower costs and happier customers. For NGOs, it means timely delivery of aid and trust from donors. For governments, it means stronger services, stability, and economic growth. Whether you want to work in the private sector, NGO world, or government, LSCM will always remain a critical skill.

Introduction

In organizations, people often confuse the words procurement, logistics, and supply chain. While they are connected, each one has its own role. Understanding their differences is important because many jobs require specialized knowledge in one or more of these areas. In this lesson, we will clearly define each concept, compare them, and show how they fit together in the bigger picture of operations.

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1. What is Procurement?

Procurement is the process of buying goods and services that an organization needs. It includes:

• Identifying needs (e.g., a hospital needs medicine).

• Sourcing suppliers (finding a company that can supply the medicine).

• Negotiating contracts and prices.

• Ensuring quality and compliance.

In simple terms, procurement answers the question:
👉 “Where and how do we get the things we need?”

Example in Malawi: When the Ministry of Education wants to buy desks for schools, it uses procurement to choose a supplier who will provide quality desks at a fair price.

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2. What is Logistics?

Logistics is about the movement, storage, and delivery of goods and services. It includes:

• Transportation (road, rail, air, or water).

• Warehousing and storage.

• Inventory management (keeping track of stock).

• Distribution to the right place, at the right time.

In simple terms, logistics answers the question:
👉 “How do we move and deliver what we bought?”

Example in Malawi: After fertilizer is procured under the Affordable Inputs Programme (AIP), logistics ensures the fertilizer is transported, stored safely, and distributed to farmers on time.

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3. What is Supply Chain Management (SCM)?

Supply Chain Management is the big picture that connects procurement, logistics, and other functions. SCM covers:

• End-to-end flow of goods, services, and information — from raw materials to final consumers.

• Coordination of procurement, logistics, production, sales, and customer service.

• Building relationships with suppliers, transporters, and customers.

In simple terms, supply chain management answers the question:
👉 “How do all the pieces work together to deliver value efficiently?”

Example in Malawi: In the tobacco industry, SCM covers everything — from farmers getting seeds (procurement), to transport of harvested leaves (logistics), to selling at auction floors and exporting to international buyers.

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4. Key Differences

Aspect	Procurement	Logistics	Supply Chain
Focus	Buying goods/services	Moving & storing goods	Managing the entire flow
Main Question	“Where do we get it?”	“How do we move it?”	“How do we connect everything?”
Scope	Narrow (purchase stage)	Medium (movement & storage)	Broad (end-to-end system)
Example	Buying hospital drugs	Delivering the drugs	Ensuring hospitals never run out

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Practical Activity

Think about a maize mill in Malawi:

1. What would procurement involve?

2. What logistics activities are needed?

3. How does supply chain management bring it all together?

Write short answers — this will help you clearly see the differences.

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Conclusion

Procurement, logistics, and supply chain are different but connected. Procurement focuses on buying, logistics focuses on moving and storing, and supply chain management focuses on the full system from supplier to customer. If procurement fails, there is nothing to move. If logistics fails, goods don’t reach customers. If supply chain fails, the whole system breaks down. By mastering these differences, you can fit into any organization and understand where your role adds the most value.

Introduction

A supply chain is most easily understood when we see it in action. In Malawi, maize—the staple food for millions—is an excellent example. From the moment maize is planted on a farm until it reaches a supermarket shelf as flour, multiple steps, people, and systems are involved. Each step relies on procurement, logistics, and coordination. Understanding this chain shows how delays, poor planning, or inefficiencies at one stage can affect the entire food system.

In Malawi, post-harvest losses are estimated at up to 30%, mainly due to poor storage and transport. This makes supply chain management critical for food security, affordability, and business growth.

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Step 1: Farming and Input Procurement

The supply chain begins with farmers. To plant maize successfully, farmers need high-quality seeds, fertilizers, and agrochemicals.

• Procurement risks: Low-quality or late-delivered inputs can reduce yields.

• Logistics risks: Delays in delivery (e.g., under the Affordable Inputs Programme) affect planting schedules.

Global insight: Some countries use digital input tracking and mobile notifications to ensure farmers receive inputs on time, reducing delays and crop losses.

Key stakeholders: Smallholder farmers, government programs, agro-dealers.

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Step 2: Harvesting, Drying, and Storage

Once maize is harvested, it must be dried and stored to prevent spoilage.

• Storage risks: Pests, mold, moisture, and theft.

• Logistics needs: Timely transport to silos, warehouses, or buyers.

In Malawi, institutions like ADMARC and private traders handle storage and initial distribution. Proper storage can reduce post-harvest losses from 30% to less than 10%, significantly improving availability.

Tech insight: Hermetic storage bags and digital inventory monitoring are modern solutions improving shelf-life and reducing losses.

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Step 3: Milling

Milling transforms maize grain into flour (ufa).

• Procurement: Mills need consistent, high-quality maize supply.

• Logistics: Efficient delivery ensures uninterrupted production.

Disruptions at this stage, like delayed transport or low-quality maize, result in stock-outs, higher prices, and dissatisfied customers.

Global insight: Automated mills in countries like Kenya use real-time supply monitoring to ensure continuous production and minimize wastage.

Key stakeholders: Milling companies, traders, warehouse managers.

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Step 4: Distribution to Shops

After milling, flour must reach supermarkets, depots, and local shops.

• Logistics challenges: Poor roads, fuel costs, vehicle breakdowns.

• Supply chain risk: Delays here directly affect customers’ access to affordable flour.

Major distributors in Malawi include Rab Processors, Sunbird, and National Milling. Strategic warehouse placement and route optimization can reduce delivery time and costs.

Tech insight: GPS tracking and inventory management systems allow distributors to predict shortages and reroute deliveries in real time.

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Step 5: Customer Purchase

The final step is the end consumer. Here, the supply chain’s efficiency is fully visible:

• If all stages worked well: flour is available, affordable, and high-quality.

• If any link fails: shelves are empty, prices rise, and food security is threatened.

Reflective question: How could a miller or distributor respond if a drought causes a maize shortage upstream?

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Lessons from the Maize Supply Chain

1. Every stage is interconnected – delays at the farm affect the shop.

2. Strong logistics improve food security – timely transport reduces waste and ensures affordability.

3. Good procurement ensures quality and reliability – high-quality inputs and grains benefit everyone.

4. Supply chain management drives efficiency – planning, coordination, and technology are key.

Global comparison: In countries like South Africa and Kenya, integrated digital supply chains track maize from farm to shelf, reducing losses and stabilizing prices.

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Practical Activity: Map a Simple Supply Chain

Take a piece of paper and map this maize supply chain:

Maize (farm) → Milling (processing) → Transport (distribution) → Shop (retail) → Customer (consumption)

For each stage, answer:

• Who is involved?

• What risks might occur?

• What logistics or procurement actions are needed?

Challenge question: Suggest one modern technology or system that could reduce losses at each stage.

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Conclusion

The journey from farm to supermarket in Malawi illustrates the critical role of supply chains in daily life. From farm inputs to milling, distribution, and final purchase, each step requires coordination, resources, and problem-solving. A weak link anywhere can lead to shortages, price spikes, and hunger.

By studying supply chains like maize, we can design stronger systems that improve food security, business growth, and customer satisfaction.

Objective: Understand how maize moves from the farm to the supermarket, the risks at each stage, and how logistics and procurement ensure it reaches customers successfully.

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Step 1: Gather Materials

• A piece of paper or notebook

• Colored pens or pencils

• A ruler (optional, for neat lines)

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Step 2: Draw the Supply Chain Flow

Create a simple flow with arrows showing how maize moves. The stages are:

Farm → Storage → Milling → Distribution → Shop → Customer

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Step 3: Fill in the Details

For each stage, write:

1. Who is involved? (e.g., farmers, traders, millers)

2. Risks or problems (e.g., pests, late delivery, poor roads)

3. Logistics or procurement actions (e.g., timely transport, quality checks, warehouse storage)

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Step 4: Add Real Examples

Here’s a filled example to guide students:

Stage	Who is Involved	Risks/Problems	Logistics/Procurement Actions
Farm	Smallholder farmers, AIP program	Late fertilizer delivery, low-quality seeds	Timely input delivery, quality seed procurement
Storage	Traders, ADMARC warehouses	Pests, mold, theft	Drying maize, storing in sealed bags or silos
Milling	Milling companies	Shortage of maize, machine breakdown	Purchase contracts, schedule deliveries, maintain machinery
Distribution	Transport companies, wholesalers	Poor roads, high fuel costs, delays	Route planning, reliable trucks, inventory tracking
Shop	Supermarkets, local shops	Stock-outs, high prices	Timely restocking, monitoring sales
Customer	End consumers	Flour not available, high cost	Supply chain must be smooth from farm to shop

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Step 5: Reflect and Analyze

Ask yourself or students:

• Which stage is the most vulnerable? Why?

• What solutions can reduce risks at that stage?

• How could technology (mobile alerts, warehouse monitoring, GPS tracking) improve the chain?

• If there was a drought and the farm produced less maize, how would you adjust the supply chain?

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Step 6: Bonus Challenge

• Draw a colored diagram with icons for each stage (e.g., a farmer, a truck, a mill).

• Connect the stages with arrows and mark risks with red and solutions with green.

• Share your diagram with the class and explain why this chain would work or fail.

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Example of a Diagram

[FARM 🌾] → [STORAGE 🏚️] → [MILLING ⚙️] → [DISTRIBUTION 🚚] → [SHOP 🏪] → [CUSTOMER 👩‍👩‍👦]

• Red ✖️ = possible risks

• Green ✔️ = actions to prevent problems

Example:

• Farm: ✖️ late fertilizer → ✔️ order seeds early

• Storage: ✖️ pests → ✔️ use hermetic bags

• Distribution: ✖️ bad roads → ✔️ route planning

This turns the supply chain into a visual story that students can relate to.

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Why This Activity Amazes Students

• Students see the entire chain in action, not just theory.

• They think like managers, solving real-world problems.

• They use colors, drawings, and data, making the lesson memorable.

• They understand how one weak link affects the whole system, reinforcing critical thinking.