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Difference Between Logistics and Supply Chain Management

logistics vs supply chain managementAll the activities, associated with the sourcing, procurement, conversion and logistics management, comes under the supply chain management. Above all, it encompasses the coordination and collaboration with the parties like suppliers, intermediaries, distributors and customers. Logistics Management is a small portion of Supply Chain Management that deals with the management of goods in an efficient way.

Supply Chain Management, it is a broader term which refers to the connection, right from the suppliers to the ultimate consumer.

It has been noticed that there is a drastic change in the manner in which business was conducted many years ago and now. Due to the improvement in the technology, which leads to the development of all key areas of business. Supply Chain Management also evolved as an improvement over Logistics Management, from past years. Check out this article to understand the difference between Logistics Management and Supply Chain Management.

Content: Logistics Vs Supply Chain Management

  1. Comparison Chart
  2. Definition
  3. Key Differences
  4. Conclusion

Comparison Chart

Basis for ComparisonLogistics ManagementSupply Chain Management
MeaningThe process of integrating the movement and maintenance of goods in and out the organization is Logistics.The coordination and management of the supply chain activities are known as Supply Chain Management.
ObjectiveCustomer SatisfactionCompetitive Advantage
EvolutionThe concept of Logistics has been evolved earlier.Supply Chain Management is a modern concept.
How many organizations are involved?SingleMultiple
One in anotherLogistics Management is a fraction of Supply Chain Management.Supply Chain Management is the new version of Logistics Management.

Definition of Logistics Management

The management process which integrates the movement of goods, services, information, and capital, right from the sourcing of raw material, till it reaches its end consumer is known as Logistics Management. The objective behind this process is to provide the right product with the right quality at the right time in the right place at the right price to the ultimate customer. The logistic activities are divided into two broad categories they are:

  • Inbound Logistics: The activities which are concerned with procurement of material, handling, storage and transportation
  • Outbound Logistics: The activities which are concerned with the collection, maintenance, and distribution or delivery to the final consumer.

Apart from these, other activities are warehousing, protective packing, order fulfillment, stock control, maintaining equilibrium between demand and supply, stock management. This will result in savings in cost and time, high-quality products, etc.

Definition of Supply Chain Management

Supply Chain Management (SCM) is a series of interconnected activities related to the transformation and movement of raw material to the finished goods till it reaches to the end user. It is the outcome of the efforts of multiple organizations that helped in making this chain of activities successful.

Supply Chain Management

Supply Chain Management

These organizations may include the firms with whom the organization is currently working like partners or suppliers, manufacturers, wholesalers, retailers, and consumers. The activities may include integration, sourcing, procurement, production, testing, logistics, customer services, performance measurement, etc.

Supply Chain Management has a multi-dimensional approach which manages the flow of raw materials and works in progress (semi-finished goods) within the organization and the end product outside the organization till it reaches the hands of the final consumer with a complete emphasis on the customer requirement.

Key Differences Between Logistics and Supply Chain Management

The following are the major differences between logistics and supply chain management:

  1. The flow and storage of goods inside and outside the firm are known as Logistics. The movement and integration of supply chain activities are known as Supply Chain Management.
  2. The main aim of Logistics is full customer satisfaction. Conversely, the main aim behind Supply Chain Management is to gain a substantial competitive advantage.
  3. There is only one organisation involved in Logistics while some organisations are involved in Supply Chain Management.
  4. Supply Chain Management is a new concept as compared to Logistics.
  5. Logistics is only an activity of Supply Chain Management.

Conclusion

Logistics is a very old term, firstly used in the military, for the maintenance, storage and transportation of army persons and goods. Nowadays, this term is used in many spheres, not specifically in the military after the evolution of the concept of Supply Chain Management. It has also been said that SCM is an addition over Logistics Management as well as SCM comprises of logistics. Both are inseparable. Hence they do not contradict but supplement each other. SCM helps Logistics to be in touch with the transportation, storage and distribution team.

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Comments

  1. loganathan says

    March 8, 2016 at 4:04 am

    great stuff

    Reply
  2. K V Venkataramana says

    March 23, 2016 at 6:37 am

    Wonderful article!

    Reply
  3. Mbwana Jegah says

    April 14, 2016 at 12:14 pm

    Nice article

    Reply
  4. ayat says

    April 17, 2016 at 10:41 am

    great one

    Reply
  5. fallin says

    June 26, 2016 at 6:31 pm

    great article!

    Reply
  6. alfa says

    August 31, 2016 at 6:42 am

    good one

    Reply
  7. Tatiana says

    September 7, 2016 at 9:20 pm

    Very short and good explanation! Excellent 🙂

    Reply
  8. Virginia Dlamkile says

    September 14, 2016 at 12:56 am

    Good article. It will definitely help with my research project.

    Reply
  9. Srikanth says

    September 23, 2016 at 5:43 am

    It’s good

    Reply
  10. Elliot Stephens says

    October 19, 2016 at 8:00 pm

    A fantastic breakdown of logistic and supply chain management.

    Reply
  11. AHMED SEDKI says

    February 1, 2017 at 5:25 pm

    its a great atricle very simple very targetive better than so many books

    Reply
    • Surbhi S says

      February 1, 2017 at 5:29 pm

      Thanks a ton, all of you for your valuable views and appreciation, it means a lot to us. Keep sharing.. 🙂

      Reply
  12. suraj says

    February 4, 2017 at 7:11 am

    Thanks a lot article cleared all of mine confusions regarding logistics and scm
    and better than my study material .

    Reply
  13. kasa says

    April 9, 2017 at 4:35 pm

    superb article

    Reply
  14. divya says

    April 25, 2017 at 10:13 am

    Thanks for sharing this article. It provides a distinguishing features of logistics and supply chain management.

    Reply
  15. Ali Alavi says

    May 23, 2017 at 11:59 am

    Very good article. Can you provide references?

    Reply
    • Surbhi S says

      May 23, 2017 at 12:25 pm

      “Difference Between Logistics and Supply Chain Management” By Surbhi S keydifferences.com
      <http://keydifferences.com/difference-between-logistics-and-supply-chain-management.html>

      Reply
  16. Jamil says

    September 20, 2017 at 4:44 pm

    Thankyou, it will be a worthful article for students like me who were confused in both these terms………This Article cleared me the whole Picture…..

    Reply
  17. KARTHIKEYAN.RA says

    September 21, 2017 at 4:09 pm

    Thanks a lot..

    Reply
  18. Raj Kumar says

    October 28, 2017 at 2:35 pm

    Thank you very much for putting this information very nicely. It really helped to understand the difference between the two and how are they interrelated.

    Thank you once again.

    Reply
  19. Ajis Asharaf says

    November 2, 2017 at 9:53 am

    Thanks,
    It will surely help me ?

    Reply
  20. Jigna says

    March 22, 2018 at 10:54 am

    Great article!!

    Reply
  21. Charu says

    April 26, 2018 at 5:05 pm

    Well explained the difference between the two. Easy to uderstand.

    Reply
    • Surbhi S says

      May 11, 2018 at 3:38 pm

      Thank you so much guys for sharing your views with us and constantly appreciating Key Differences. 🙂 🙂

      Reply
      • sabah says

        May 30, 2018 at 5:41 pm

        Thank you for this article ,it’s very helpful .

        Could you please tell me which sources (books, articles ,conferences …) you have used to write this valuable article.

        Reply
  22. ARUN GEORGE says

    July 4, 2018 at 11:37 am

    👌👌

    Reply
  23. meena says

    February 23, 2019 at 11:17 am

    Very Nice and Easy to understandable article about logistics management

    Reply
  24. Akmal Wardak says

    March 26, 2019 at 5:33 am

    Excellent. well explained.

    Reply
  25. Francois Mukwa says

    November 1, 2019 at 2:13 pm

    I really appreciate the way clarify the difference between these concepts and thank you a lot.
    best regards.

    Reply
  26. kgothatso says

    March 29, 2020 at 4:58 pm

    didnt even know there was a difference thanks for the info

    Reply
  27. Noor Muhammad says

    April 15, 2021 at 6:12 am

    Thanks for giving a very clear information about SCM and Logistics 😊

    Reply
  28. Radical Global says

    December 10, 2021 at 5:18 pm

    This is one of the most incredible blogs I’ve read in a very long time.

    Reply
  29. Rahul Arzare says

    December 17, 2022 at 11:50 am

    very short and simply i undersatnd the different between LOGISTICS and SCM thanks a lot

    Reply

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