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                LOGISTICS AND SUPPLY CHAIN MANAGEMENT

Logistics Management is a part of Supply Chain Management that deals with  goods in an efficient way. Although, if we talk about Supply Chain Management, it is a broader term which refers to the connection, from the suppliers to the ultimate end user. People are quite puzzled between these two concepts.

If we noticed, there has been a dramatic change in the manner in which business is conducted many years ago and now. Due to the improvement in the technology, you can see all the departments of business has been developed. Supply Chain Management also developed an improvement over Logistics Management, from past years

 

BASIS FOR COMPARISON

LOGISTICS MANAGEMENT

SUPPLY CHAIN MANAGEMENT

Meaning

The process of  making  the movement of goods in the organization is Logistics.

The consolidating and management of the supply chain activities are known as Supply Chain Management.

Objective

 Satisfying the customers

Competitive Advantage

Evolution

The concept of Logistics has been evolved long ago.

Supply Chain Management is a modern concept.

How many organizations are involved?

Single

Multiple

One in another

Logistics Management is a part of SCM.

Supply Chain Management is the new version of Logistics Management.

 

 

 

 

 

Definition of Logistics Management

The council of supply chain management professionals (CSCMP) has defined logistics is a part of

Supply chain management that plans ,implements and controls the  effective forward and reverse flow  of goods ,services and their  information between the stage of origin and the stage of consumption in order to meet customer’s requirement.

The logistic activities are divided into two categories they are:

Inbound Logistics: The process which involved with purchasing of material, handling, storage and transportation

Outbound Logistics: this involved with the collection, service and delivery to the final consumer.

 It also concentrate to  other activities are warehousing,  packing, order fulfilment, stock control, maintaining balance between demand and supply, inventory  management. This will helps to minimise  in cost and time,  quality management  etc.

 Supply Chain Management

Supply Chain Management (SCM) is a connection of   activities related to the changes  and flow  from raw material to the final product till it delivers to the end user. It is the outcome of multiple organizations to make this chain of activities successful. 

These organizations may include the company with whom the organization is currently working like distributors, manufacturers, wholesalers, retailers and end user. The process may include integration, sourcing, procurement, manufacturing, quality testing, logistics, customer services, performance report, etc.

SCM has a multi-dimensional methods which manages the flow of raw materials and work in progress (semi finished goods) inside  the organization and the finished goods outside the organization till it reaches to the final consumer with a complete emphasis on the customer requirement.

Differences between Logistics and Supply Chain Management

Below shows the main differences between logistics and supply chain management:

  1. The flow and storage of goods inside and outside the organization is known as Logistics. The movement and consolidation of supply chain activities is known as Supply Chain Management.
  2. The main aim of Logistics is full customer satisfaction. Whereas , the main aim behind Supply chain Management is to get substantial competitive advantage.
  3. There is only one organization involved in Logistics while a number of organizations are participating in Supply Chain Management.
  4. Supply Chain Management is a modern concept as compared to Logistics.
  1. Logistics is only an activity of Supply Chain Management

 

Conclusion 

Logistics is an ancient term, primarily used in the military, for the repair, storage and transportation of army persons and goods. Nowadays, this term is used in many spheres, not only in military after the evolution of Supply Chain Management. It has also mentioned that SCM is an add on over Logistics Management as well as SCM comprises of logistics. Both are unavoidable, hence they do not be in conflict but supplement each other. SCM helps Logistics to be in hand with the transportation department, storage and packing and with the distribution team.

 

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