All 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
Comparison Chart
| Basis for Comparison | Logistics Management | Supply Chain Management |
|---|---|---|
| Meaning | The 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. |
| Objective | Customer Satisfaction | Competitive Advantage |
| Evolution | The concept of Logistics has been evolved earlier. | Supply Chain Management is a modern concept. |
| How many organizations are involved? | Single | Multiple |
| One in another | Logistics 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
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:
- 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.
- The main aim of Logistics is full customer satisfaction. Conversely, the main aim behind Supply Chain Management is to gain a substantial competitive advantage.
- There is only one organisation involved in Logistics while some organisations are involved in Supply Chain Management.
- Supply Chain Management is a new concept as compared to Logistics.
- 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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loganathan says
great stuff
K V Venkataramana says
Wonderful article!
Mbwana Jegah says
Nice article
ayat says
great one
fallin says
great article!
alfa says
good one
Tatiana says
Very short and good explanation! Excellent 🙂
Virginia Dlamkile says
Good article. It will definitely help with my research project.
Srikanth says
It’s good
Elliot Stephens says
A fantastic breakdown of logistic and supply chain management.
AHMED SEDKI says
its a great atricle very simple very targetive better than so many books
Surbhi S says
Thanks a ton, all of you for your valuable views and appreciation, it means a lot to us. Keep sharing.. 🙂
suraj says
Thanks a lot article cleared all of mine confusions regarding logistics and scm
and better than my study material .
kasa says
superb article
divya says
Thanks for sharing this article. It provides a distinguishing features of logistics and supply chain management.
Ali Alavi says
Very good article. Can you provide references?
Surbhi S says
“Difference Between Logistics and Supply Chain Management” By Surbhi S keydifferences.com
<http://keydifferences.com/difference-between-logistics-and-supply-chain-management.html>
Jamil says
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…..
KARTHIKEYAN.RA says
Thanks a lot..
Raj Kumar says
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.
Ajis Asharaf says
Thanks,
It will surely help me ?
Jigna says
Great article!!
Charu says
Well explained the difference between the two. Easy to uderstand.
Surbhi S says
Thank you so much guys for sharing your views with us and constantly appreciating Key Differences. 🙂 🙂
sabah says
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.
ARUN GEORGE says
👌👌
meena says
Very Nice and Easy to understandable article about logistics management
Akmal Wardak says
Excellent. well explained.
Francois Mukwa says
I really appreciate the way clarify the difference between these concepts and thank you a lot.
best regards.
kgothatso says
didnt even know there was a difference thanks for the info
Noor Muhammad says
Thanks for giving a very clear information about SCM and Logistics 😊
Radical Global says
This is one of the most incredible blogs I’ve read in a very long time.
Rahul Arzare says
very short and simply i undersatnd the different between LOGISTICS and SCM thanks a lot