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Difference Between Logistics and Supply Chain Management

Logistics refers to the planning and execution of transportation and warehousing activities within a supply chain. Supply chain management is a broader term that encompasses all activities involved in sourcing and procurement, production, and logistics management to deliver products to customers. While logistics focuses on transportation and warehousing operations, supply chain management optimizes the entire network of entities involved in providing goods and services.

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212 views3 pages

Difference Between Logistics and Supply Chain Management

Logistics refers to the planning and execution of transportation and warehousing activities within a supply chain. Supply chain management is a broader term that encompasses all activities involved in sourcing and procurement, production, and logistics management to deliver products to customers. While logistics focuses on transportation and warehousing operations, supply chain management optimizes the entire network of entities involved in providing goods and services.

Uploaded by

siddhant kohli
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Difference Between Logistics and Supply Chain

Management?
Overview
 Think of a supply chain as a network—of manufacturers,
suppliers, wholesalers, retailers, etc.—rather than a
series of specific functions.
 Logistics, on the other hand, is more immediately
tangible; it refers to the activities involved in moving
goods from one point to another within a supply chain.
 Simply put: Logistics is a fraction of supply chain management; the latter, an umbrella term used to
describe an entire business philosophy, encompassing all internal and external supply chain processes,
including logistics.
 Still scratching your head? You are not alone. Here's a more in-depth, visual analysis of the difference
between logistics and supply chain management, including definitions, processes, purposes, job
descriptions, and technologies affiliated with both
Definitions

Logistics Supply Chain

Noun Noun

1. the branch of military science and operations dealing 1. a channel of distribution beginning with the
with the procurement, supply, and maintenance of supplier of materials or components, extending
equipment, with the movement, evacuation, and through a manufacturing process to the
hospitalization of personnel, with the provision of facilities distributor and retailer, and ultimately to the
and services, and with related matters consumer

2. the planning, implementation, and coordination


of the details of a business or other operation

Processes

Logistics Supply Chain Management

 Inbound and Outbound Transportation  Procurement


 Warehousing  Supply Planning
 Reverse Logistics (Returns)  Demand Planning
 Protective Packaging  Enterprise Resource Planning
 Fulfillment  Inventory Management
 Manufacturing
 Logistics
 Optimization
Purpose 

Logistics Supply Chain Management

The purpose of logistics is to provide The goal of supply chain management is supply chain optimization
just-in-time delivery for the primary for the sake of competitive advantage, as in the most efficient and
sake of customer satisfaction. cost-effective methods for those working within a supply chain.

Job Descriptions

Logistics Manager Supply Chain Manager

Job responsibilities for a logistics Job responsibilities for a supply chain manager include:
manager include:
 Overseeing and managing overall supply chain
 Managing and planning for logistics and logistics operations, to maximize efficiency
policies, objectives, and initiatives. and minimize cost.
 Creating procedures for logistics  Collaborating with multiple-functional
management to optimize product managers to
workflow and minimize cost. plan and execute the development of a
distribution center operational process to
 Monitoring vendor selection and enable seamless transfers.
negotiation, distribution, transportation,
and inventory control.  Managing and monitoring vendors'
qualifications and performances to ensure they
meet the company's requirements.

 Technology

Logistics Supply Chain Management

 Transportation Management System  Enterprise Resource Planning (ERP) software:


(TMS): a logistics platform enabling functions similar to a central nervous system, for a
users to manage and optimize daily business, by collecting information about the
operations of their transportation activity and state of various divisions of the body
fleets corporate, and making this available to other parts,
where it can be used productively and . added, in
 Warehouse Management System real-time, by users
(WMS): software and processes
enabling organizations to control  Radio Frequency Identification: the use of radio
and administer warehouse operations waves to read and capture information stored on a
from the time goods or materials tag attached to an object, which can be read from up
enter until they move out to several feet away, and doesn't need to be within
direct line-of-sight of the reader to be tracked
 Customer Relationship Management (CRM)
Software: a category of software covering a broad
set of applications, designed to help businesses
manage many of the following processes: customer
data, customer interaction, information access, and
sales automation
 “Big Data”: extremely large data sets that may be
analyzed computationally to reveal patterns, trends
and associations, especially relating to human
behavior and interactions

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