Definition 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.

Definition 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 Differences 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.
Difference Between Logistics and Supply Chain Management

May 22, 2015 By Surbhi S 19 Comments

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
1.4. Conclusion
Comparison Chart

BASIS FOR LOGISTICS SUPPLY CHAIN

COMPARISON MANAGEMENT MANAGEMENT

Meaning The process of The coordination

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

Objective Customer Competitive

Satisfaction Advantage

Evolution The concept of Supply Chain

Logistics has been Management is a
evolved earlier. modern concept.

How many Single Multiple

organizations
are involved?

One in Logistics Supply Chain

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