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Di erence Between Logistics and Supply Chain

Management
Last updated on July 26, 2018 by Surbhi S

All the activities, associated with the sourcing, procurement, conversion and
logistics management, comes under the supply chain management. Above
all, it encompasses the coordination and collaboration with the parties like
suppliers, intermediaries, distributors and customers. Logistics Management
is a small portion of Supply Chain Management that deals with the management
of goods in an efficient way.
Supply Chain Management, it is a broader term which refers to the connection,
right from the suppliers to the ultimate consumer.

It has been noticed that there is a drastic change in the manner in which
business was conducted many years ago and now. Due to the improvement in
the technology, which leads to the development of all key areas of business.
Supply Chain Management also evolved as an improvement over Logistics
Management, from past years. Check out this article to understand the
difference between Logistics Management and Supply Chain Management.

Content: Logistics Vs Supply Chain Management

1. Comparison Chart
2. Definition
3. Key Differences
4. Conclusion

Comparison Chart

BASIS FOR LOGISTICS SUPPLY CHAIN

COMPARISON MANAGEMENT MANAGEMENT
 BASIS FOR LOGISTICS SUPPLY CHAIN
COMPARISON MANAGEMENT MANAGEMENT

Meaning The process of integrating The coordination and

the movement and management of the supply
maintenance of goods in and chain activities are known
out the organization is as Supply Chain
Logistics. Management.

Objective Customer Satisfaction Competitive Advantage

Evolution The concept of Logistics has Supply Chain Management

been evolved earlier. is a modern concept.

How many Single Multiple

organizations
are involved?

One in another Logistics Management is a Supply Chain Management

fraction of Supply Chain is the new version of
Management. Logistics Management.

De nition of Logistics Management

The management process which integrates the movement of goods, services,
information, and capital, right from the sourcing of raw material, till it reaches
its end consumer is known as Logistics Management. The objective behind this
process is to provide the right product with the right quality at the right time in
the right place at the right price to the ultimate customer. The logistic activities
are divided into two broad categories they are:

Inbound Logistics: The activities which are concerned with procurement

of material, handling, storage and transportation
Outbound Logistics: The activities which are concerned with the
collection, maintenance, and distribution or delivery to the final consumer.

Apart from these, other activities are warehousing, protective packing, order
fulfillment, stock control, maintaining equilibrium between demand and supply,
stock management. This will result in savings in cost and time, high-quality
products, etc.

De nition of Supply Chain Management

Supply Chain Management (SCM) is a series of interconnected activities related
to the transformation and movement of raw material to the finished goods till it
reaches to the end user. It is the outcome of the efforts of multiple organizations
that helped in making this chain of activities successful.
 Supply Chain Management

These organizations may include the firms with whom the organization is
currently working like partners or suppliers, manufacturers, wholesalers,
retailers, and consumers. The activities may include integration, sourcing,
procurement, production, testing, logistics, customer services, performance
measurement, etc.

Supply Chain Management has a multi-dimensional approach which manages

the flow of raw materials and works in progress (semi-finished goods) within the
organization and the end product outside the organization till it reaches the
hands of the final consumer with a complete emphasis on the customer
requirement.

Key Di erences Between Logistics and Supply

Chain Management
The following are the major differences between logistics and supply
chain management:
 1. The flow and storage of goods inside and outside the firm are known
as Logistics. The movement and integration of supply chain
activities 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 a
substantial competitive advantage.

3. There is only one organisation involved in Logistics while some

organisations are involved in Supply Chain Management.

4. Supply Chain Management is a new concept as compared to

Logistics.

5. Logistics is only an activity of Supply Chain Management.

Conclusion
Logistics is a very old term, firstly used in the military, for the maintenance,
storage and transportation of army persons and goods. Nowadays, this term is
used in many spheres, not specifically in the military after the evolution of the
concept of Supply Chain Management. It has also been said that SCM is an
addition over Logistics Management as well as SCM comprises of logistics. Both
are inseparable. Hence they do not contradict but supplement each other. SCM
helps Logistics to be in touch with the transportation, storage and distribution
team.

concretemender.com
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Filed Under: Business

Comments

loganathan says
March 8, 2016 at 4:04 am

great stuff

Reply

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 K V Venkataramana says
March 23, 2016 at 6:37 am

Wonderful article!

Reply

Mbwana Jegah says

April 14, 2016 at 12:14 pm

Nice article

Reply

ayat says
April 17, 2016 at 10:41 am

great one

Reply

fallin says
June 26, 2016 at 6:31 pm

great article!

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alfa says
August 31, 2016 at 6:42 am

good one

Reply

Tatiana says
September 7, 2016 at 9:20 pm

Very short and good explanation! Excellent 🙂

Reply

Virginia Dlamkile says

September 14, 2016 at 12:56 am

Good article. It will definitely help with my research project.

Reply

Srikanth says
 September 23, 2016 at 5:43 am

It’s good

Reply

Elliot Stephens says

October 19, 2016 at 8:00 pm

A fantastic breakdown of logistic and supply chain management.

Reply

AHMED SEDKI says

February 1, 2017 at 5:25 pm

its a great atricle very simple very targetive better than so many books

Reply

Surbhi S says
February 1, 2017 at 5:29 pm

Thanks a ton, all of you for your valuable views and appreciation, it
means a lot to us. Keep sharing.. 🙂

Reply
 suraj says
February 4, 2017 at 7:11 am

Thanks a lot article cleared all of mine confusions regarding logistics

and scm
and better than my study material .

Reply

kasa says
April 9, 2017 at 4:35 pm

superb article

Reply

divya says
April 25, 2017 at 10:13 am

Thanks for sharing this article. It provides a distinguishing features of

logistics and supply chain management.

Reply

Ali Alavi says

May 23, 2017 at 11:59 am

Very good article. Can you provide references?

Reply

Surbhi S says
May 23, 2017 at 12:25 pm

“Difference Between Logistics and Supply Chain Management” By

Surbhi S keydifferences.com
< http://keydifferences.com/difference-between-logistics-and-
supply-chain-management.html>

Reply

Jamil says
September 20, 2017 at 4:44 pm

Thankyou, it will be a worthful article for students like me who were

confused in both these terms………This Article cleared me the whole
Picture…..

Reply

KARTHIKEYAN.RA says
September 21, 2017 at 4:09 pm

Thanks a lot..

Reply
 Raj Kumar says
October 28, 2017 at 2:35 pm

Thank you very much for putting this information very nicely. It really
helped to understand the difference between the two and how are they
interrelated.

Thank you once again.

Reply

Ajis Asharaf says

November 2, 2017 at 9:53 am

Thanks,
It will surely help me ?

Reply

Jigna says
March 22, 2018 at 10:54 am

Great article!!

Reply

Charu says
April 26, 2018 at 5:05 pm
Well explained the difference between the two. Easy to uderstand.

Reply

Surbhi S says
May 11, 2018 at 3:38 pm

Thank you so much guys for sharing your views with us and
constantly appreciating Key Differences. 🙂 🙂

Reply

sabah says
May 30, 2018 at 5:41 pm

Thank you for this article ,it’s very helpful .

Could you please tell me which sources (books, articles

,conferences …) you have used to write this valuable article.

Reply

ARUN GEORGE says

July 4, 2018 at 11:37 am

👌👌

Reply
 meena says
February 23, 2019 at 11:17 am

Very Nice and Easy to understandable article about logistics

management

Reply

Akmal Wardak says

March 26, 2019 at 5:33 am

Excellent. well explained.

Reply

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