Difference Between Supply Chain Management & Logistics Management

 Logistics is a very old term, firstly used in the military for the maintenance, storage, and transportation of army person and goods. Nowadays this term is used in many spheres. after the evolution of the “supply chain Management”

So, from here we will start to know the difference between logistics management & supply chain management 

First, we will start from “Definition of logistics management “

It is the process that integrates the movement of goods, services, information, and capital right from sourcing of Raw materials, till reaches it the end of the consumer is known as logistics management.

Objectives :

Is to provide the right product with the right quality and at the right time in the right place to the ultimate customer.

Logistics activities are divided into two categories :

  

Inbound: which are concerned with the procurement of materials, handling, storage, and transportation.

Outbound: which are concerned with distribution and delivering to the final customer.

Note: logistics management can do other activities like protective packing, order fulfillment, stock control, maintain the cooperation between supply chain & logistics.

Supply Chain Management :

(SCM) is a series of interconnected activities related to the transportation and movement of Raw materials to the finished good till it reach the end user. It is an outcome of efforts from multiple organizations that are helped in making this chain of all activities.

Supply chain management has a multi-dimensional approach that manages the flow of raw materials and works in process ( Semi-finished goods ) within the organization and the end product outside the organization till reaches the hand of the final consumer with a complete activates of customer requirement + satisfaction. 

SCM- is the accumulative Dept. from ( materials planning, Demand planning, production planning, procurement, warehouse, logistics ) all of these depts. called supply chain management.

Key Difference between logistics and supply chain. 

Following is a major difference:

1- the flow and storage of goods inside and outside the firm are known as logistics. The movement and integration of supply chain management 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 substantial advantages.

3- supply chain management is a new concept as compared to logistics.

4- logistics is the only activity of supply chain management.

Regards,

Kareem Soliman