A Supply chain is globally popular for running eCommerce businesses, and logistics is a term used for sending, receiving, moving and storing goods. Most of us are confused and are unable to differentiate between logistics and supply chains. Logistics is a part of supply chain management that helps to deliver products from one place to another till these products reach at the final destination.
In supply chain management, there come many elements, i.e.
- Sourcing of material
- Understanding consumer needs
- Conversion into final products
- Delivering products at the right destination, etc
This blog post will clear you the difference between supply chain management vs logistics
Supply Chain Management:
Supply Chain Management is the trendiest system in which suppliers, manufacturers, end-users, logistics businesses, retailers and wholesalers collaborate. It is an innovative and large process in which various organizations get involved to get an order for a product or service. This process ends when a certain product or service is delivered to the final destination.
Supply china management is an amazing function that professionally monitors and directs the manufacturers. The moving of products until their delivery to end users comes under supply chain management. Supply Chain Management involves multiple partners to store, supply, manufacture, and sell goods.
The main aim of supply chain management is to perform various activities with the help of multiple partners.
The activities involved in supply chain management are:
- Integration
- Services
- Sourcing
- Logistics
- Testing
- Production
- Measurement
- Performance etc
Supply Chain Management ensures the flow of raw materials and processes in progress within and outside the organization’s end product. It is also responsible for the order, inventory and supply chain process.
Logistics Management:
It is a process of sending goods and services; any information and capital between the point of origin and the point of consumption is involved. It is a small part of supply chain management that aims to meet the customer’s needs.
The logistics management system’s main purpose is to plan and implement the movement and storage of goods effectively. It also controls how goods move from one place to another using modern technology.
Logistics companies offer customers diverse services using different assets, i.e., air, land and ocean. The logistics management system has the following objectives for products delivery, i.e.:
- Right product
- Right quality
- Right time
- Right place
- Right price
In a logistics management system, there are many activities are involved. These activities are divided into two categories:
- Inbound Logistics
- Outbound logistics
- Inbound logistics comprises activities with procurement of material handling, storage and transportation of goods from one place to another.
- Outbound logistics comprises activities related to the collection, maintenance, distribution and delivery of goods to the end users.
Key Difference between Supply Chain Management and Logistics Management:
Some points mentioned below can differentiate between supply chain management and logistics management.
- Supply chain management is about the coordination and management of the supply chains of a company. Logistics management is integrating and maintaining goods in a logistic company.
- Logistics management is meant for customer satisfaction, whereas supply chain management aims to get a competitive advantage.
- Logistics management includes only a single company or an organization, whereas supply chain management involves multiple organizations performing with coordination to complete the whole process.
- Logistics management aims to deliver goods to the final destination, whereas modern techniques facilitate the customers.
- Logistics management is one of the oldest terms work using traditional methods, whereas supply chain management is only an addition to logistics management.
- Supply chain management aims to connect suppliers to the ultimate consumers, whereas logistics management is about the maintenance and storage of products.
- Logistics is the sub-sector of supply chain management, whereas supply chain management is a new and trendy concept.
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