Logistics Management is a part of Supply Chain
Management that deals with goods in
an efficient way. Although, if we talk about Supply Chain Management, it
is a broader term which refers to the connection, from the suppliers to the
ultimate end user. People are quite puzzled between these two concepts.
If we noticed, there has been a dramatic change in the
manner in which business is conducted
BASIS FOR COMPARISON
|
LOGISTICS MANAGEMENT
|
SUPPLY CHAIN MANAGEMENT
|
Meaning
|
The process of
making the movement of goods in
the organization is Logistics.
|
The consolidating and management of the supply chain
activities
|
Objective
|
Satisfying the
customers
|
Competitive Advantage
|
Evolution
|
The concept of Logistics has been evolved long ago.
|
Supply Chain Management is a modern concept.
|
How many organizations are involved?
|
Single
|
Multiple
|
One
|
Logistics Management is a part of SCM.
|
Supply Chain Management is the new version of Logistics
Management.
|
Definition of Logistics Management
The council
of supply chain management professionals (CSCMP) has defined logistics is a
part of
Supply
chain management that plans , ,
The logistic activities are divided into two categories they
are:
Inbound Logistics: The process which involved with
purchasing of material, handling, storage and transportation
Outbound Logistics: this involved with the
collection, service and delivery to the final consumer.
It also concentrate
to other activities are warehousing, packing, order fulfilment , stock control,
maintaining balance between demand and supply, inventory management. This will helps to minimise in cost and time, quality management etc.
Supply Chain
Management
Supply Chain Management (SCM) is a connection of activities related to the changes and flow from raw material to the final product till it
delivers to the end user. It is the outcome of multiple organizations to make
this chain of activities successful.
These organizations may include the company with whom the
organization is currently working like distributors, manufacturers, wholesalers,
retailers and end user. The process may include integration, sourcing,
procurement, manufacturing, quality testing, logistics, customer services,
performance report, etc.
SCM has a multi-dimensional methods which manages the flow
of raw materials and work in progress (semi finished goods) inside the organization and the finished goods
outside the organization till it reaches to the final consumer with a complete
emphasis on the customer requirement.
Differences between Logistics and Supply Chain
Management
Below shows the main differences between logistics and
supply chain management:
- The
flow and storage of goods inside and outside the organization
is known as Logistics. The movement and consolidation of supply chain activitiesis known as Supply Chain Management. - The
main aim of Logistics is full customer satisfaction. Whereas , the main
aim behind Supply chain Management is to get substantial competitive
advantage.
- There
is only one organization involved in Logistics while a number of
organizations are participating in Supply Chain Management.
- Supply
Chain Management is a modern concept as compared to Logistics.
5. Logistics is only an activity of Supply Chain Management
Conclusion
Logistics is an ancient term,
primarily used in the military, for the repair, storage and transportation of
army persons and goods. Nowadays, this term is used in many spheres, not
only in military after the evolution of Supply Chain Management. It has also mentioned
that SCM is an add on over Logistics Management as well as SCM comprises
of logistics. Both are unavoidable, hence they do not be in conflict but
supplement each other. SCM helps Logistics to be in hand with the
transportation department, storage and packing and with the distribution team.
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