More often than not, the difference between logistics vs supply chain management (SCM) comes from their respective roles, but a subset of each other. The two standard terms—Supply Chain Management (SCM) and Logistics Management (LM) belong to the freight world. These terms are often changed interchangeably, and the differences are not very apparent. Each of these terms has different functions and processes in many aspects.
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Logistics management is a small portion of SCM, where a logistics officer ensures the smooth flow of goods, services, information, and capital right from raw material to its final consumer. Whereas supply chain management is a broader term and starts at an early stage, right from the product’s source to delivering it to the consumers.
Let’s get a brief overview of both these processes to understand them in a better way:
The main difference between logistics vs supply chain management (SCM) is that one represents the activities involved in moving goods from one point to another while the network—of manufacturers, suppliers, wholesalers, retailers, etc. -- all encompass SCM processes.
There is a thing separating both supply chain management from logistics can appear blurred. Two are interchangeable terms yet share a symbiotic relationship that exists, but each field exhibits its own set of functions and purposes, consisting of specialized tasks and responsibilities.
Overview
Logistics is more tangible; as it is only limited to moving goods from one point to another within a supply chain.
So broadly, Logistics is a fraction of the supply chain management network. We’re presenting the more in-depth differences between logistics and supply chain management, including definitions, purposes, job roles for each of the terms.
Logistics
Inbound and Outbound Transportation
Warehousing
Reverse Logistics
Protective Packaging
Fulfillment
Procurement
Supply Chain Management
Supply Planning
Demand Planning
Enterprise Resource Planning
Inventory Management
Manufacturing
Logistics
Optimization
Purpose
Logistics
The primary purpose of logistics is to deliver the products on time for the primary sake of customer satisfaction.
Supply Chain Management
The goal of supply chain management is to optimize the process of supply chain networks ensuring efficiency and cost-effectiveness for those working within a supply chain.
Job Descriptions
Logistics Manager
Job responsibilities include:
Planning and strategizing logistics policies, objectives, and initiatives.
Supply Chain Manager
Creating procedures for logistics management to optimize production workflow and minimize cost.
Job Responsibilities Include:
Monitoring and managing overall supply chain and logistics operations, to maximize efficiency and to reduce cost.
Collaborating with multi-faceted managers to
Development of a distribution plan and center operational process and smooth implementation to enable seamless transfers.
Managing and monitoring vendors' qualifications and performances to ensure they meet the company's requirements and helping in achieving the company's goals.
Right vendor selection and negotiation, distribution, transportation, and inventory control.
Key Differences
It is vital to remember that logistics and supply chain management supplement each other, one process can never exist without the other.
We have listed out some key differences between the two terms that will help you to understand the key aspects which makes them different processes.
The fundamental difference is clear; the SCM involves designing and implementing planning and efficiently storing goods and services between the point of origin and point of consumption. Whereas Logistics Management’s main objective is to cater to customer requirements and deliver the right product at the right time.
Supply Chain Management ensures that major business processes within and across companies should deliver high-performance that drives competitive advantage.
Logistics Management refers to the movement, storage, and flow of goods, services, and information within the premises of the organization and externally. Logistics is the sub-section of the Supply chain. Also, Logistics stores are safe until they are needed elsewhere.
The goal of supply chain management is to focus on competitive advantage, while the main focus of logistics is meeting customer requirements and end-consumer satisfaction.Logistics is an activity within the supply chain, SCM emphasizes the competitive advantage.
Wrap up!
In the fast-changing world, where connectivity and speed matter, specialization in global supply chain management courses would enable students to learn the logistics, production, processes involved in the business.
The unique online professional programs at ecadema, lays the core strengths of Logistic operations, Supply chain management, and Business Analytics, to ensure professionals acquire business tools, innovative mindset, and interpersonal skills to pursue their careers.
Corporate professional training, at ecadema offers providing learners with the opportunity to be internationally valued and will help advance your knowledge of supply chain management and prepare you for the jobs of the future through online courses in Supply Chain Management and Logistics.
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