Difference Between Supply Chain Management and Logistics
Suppose you are trying to learn about the difference between supply chain and logistics. In that case, you may already know that they are related to each other. And you can easily detect the differences if you want to find out more about these terms.
But sometimes easier things are a little complicated to get. So if you are feeling overwhelmed while gathering knowledge about these two terms’ characteristics, I will solve your problems.
The supply chain management monitors the sourcing of raw materials, the customers’ requirements, production, and delivery of the products. On the other hand, logistics is a small part of this elaborate system that deals with managing products proficiently.
Do you want to find out more? Just follow me to the end of this write-up!
Supply Chain Management Vs. Logistics – Everything You Need to Know
Before I start telling you about the supply chain and logistics in detail, you need to know to learn the definition of these two statements to have better knowledge about them. So let’s start with that first.
Definition of Supply Chain Management
Supply chain management is a combination of various activities that deal with everything from raw materials to finished products. So, from sourcing the material to delivering the products in the consumers’ hands, everything falls under this management.
To make this chain successful, you need to deal with multiple small organizations to make this chain management successful. This multi-dimensional approach manages the flow of raw materials and monitors the productions. And then it makes sure that the users are getting their desired products.
The supply chain management activities may include sourcing, procurement, production, integration, testing, customer services, logistic, etc.
Definition of Logistics Management
Logistics management is a part of the supply chain that combines information, products, services, and capital movements. It deals with the sourcing of material and till the finished goods reach their end customer.
This management ensures the delivery of the right product at the promised time, with the best quality, in the right place, within the right price to the ultimate consumer.
Logistics management can be divided into two categories, they are;
- Inbound Logistics
- Outbound Logistics
Inbound Logistics
The inbound logistics monitors the activities such as sourcing the material, handling, movements, and storage.
Outbound Logistics
Outbound logistics is all about the maintenance, collection, and distribution of the finished products.
The Key Differences Between Supply Chain Management and Logistics Management
Now that you know about these two terms elaborately, it’s time for you to learn the differences between them. So let’s dive into that part right away!
Here are the key differences between supply chain management and logistics;
- Logistics management deals with the flow and storage of products inside and outside of the firm. By contrast, the movement and integration of the supply chain are known as supply chain management.
- The purpose of logistics is to ensure the ultimate satisfaction of the customer. On the other hand, supply chain management is concerned with procurement, supply planning, demand planning, resource planning, inventory management, production, logistics, and optimization.
- There is only one organization that runs under logistics. And the logistic runs under the administration of supply chain management.
- Supply chain management is a newer concept compared to logistics.
- Logistic is just a single activity. Conversely, the SCM is a group of activities.
Recommended For You:
Job Description of Logistics Manager and Supply Chain Manager
The job requirements of a logistics manager and supply chain manager are quite different. Let’s take a look at their job description for a better understanding.
Job Responsibilities of a Logistic Manager
- Managing the policies of logistics
- Planning and managing the logistics initiatives, and goals
- Creating procedures to optimize the production workflow
- Making plans to minimize the cost
- Monitoring the vendor section and negotiations
- Deal with the transportation, delivery, and inventory control
Job Responsibilities of a Supply Chain Manager
- Managing the overall supply chain, including the logistics divisions
- Maximize the efficiency
- Minimize the overall cost
- Collaborate with other multiple-functional managers to plan and develop the distribution of the produced goods
- Ensure the seamless transfer of the products
- Managing and monitoring the vendors
Final Words
Hopefully, now you know the difference between supply chain and logistics. As the world needs better business managers these days, you can use this information as a primary step to achieving tremendous success. The logistics and supply chain management are inseparable. To maintain a perfect SCM, you need to make sure your logistic department is running flawlessly.
