Intended Learning Outcomes
By the end of this lesson, you should be able to:
A. Know the difference between Logistics and Supply Chain;
B. Discuss the Job Description, Process and purpose of a Logistics manager and
Supply Chain manager;
C. Discuss the Eight Components of Supply Chain Management
Difference between Logistics and Supply Chain Management
Logistics Management is a small portion of Supply Chain Management that deals
with management of goods in an efficient way. Although, if we talk about Supply Chain
Management, it is a broader term which refers to the connection, right from the suppliers to the
ultimate consumer. People are quite puzzled between these two concepts.
It has been noticed that, there has been a drastic change in the manner in which
business is conducted many years ago and now. Due to the improvement in the technology, you
can see all the areas of business has been developed. Supply Chain Management also evolved
as an improvement over Logistics Management, from past years. Now coming to the point, let’s
start understanding the difference between Logistics and Supply Chain Management
Comparison Chart
BASIS FOR
COMPARISON LOGISTICS MANAGEMENT SUPPLY CHAIN MANAGEMENT
The process of integrating the The coordination and management
movement and maintenance of of the supply chain activities are
goods in and out the organization is known as Supply Chain
Meaning Logistics. Management.
Objective Customer Satisfaction Competitive Advantage
The concept of Logistics has been Supply Chain Management is a
Evolution evolved earlier. modern concept.
How many
organizations are
involved? Single Multiple
Supply Chain Management is the
Logistics Management is a fraction of new version of Logistics
One in another Supply Chain Management. Management.
Process
Logistics Supply Chain Management
Inbound and Outbound Transportation Procurement
Warehousing Supply Planning
Reverse Logistics (Returns) Demand Planning
Protective Packaging Enterprise Resource Planning
Fulfillment Inventory Management
Manufacturing
Logistics
Optimizationthe action of making the
best or most effective use of a
situation or resource.
Purpose
Logistics Supply Chain Management
The purpose of logistics is to provide just-in- The goal of supply chain management is
time delivery for the primary sake supply chain optimization for the sake
of customer satisfaction. of competitive advantage, as in the most
efficient and cost-effective methods for those
working within a supply chain.
Job Description
Logistics Manager Supply Chain Manager
Job responsibilities for a logistics Job responsibilities for a supply chain
manager include: manager include:
Managing and planning for logistics Overseeing and managing overall
policies, objectives, and initiatives. supply chain and logistics operations,
to maximize efficiency and minimize
Creating procedures for logistics cost.
management to optimize product
workflow and minimize cost. Collaborating with multiple-functional
managers to
Monitoring vendor selection and plan and execute the development of
negotiation, distribution, a
transportation, and inventory control. distribution center operational process
to
enable seamless transfers.
Managing and monitoring vendors'
qualifications and performances to
ensure they meet the company's
requirements.
Technology
Logistics Supply Chain Management
Transportation Management System Enterprise Resource Planning (ERP)
(TMS): a logistics platform enabling software: functions similar to a central
users to manage and optimize daily nervous system, for a business, by
operations of their transportation collecting information about the
fleets activity and state of various divisions
of the body corporate, and making
Warehouse Management System this available to other parts, where it
(WMS): software and processes can be used productively and . added,
enabling organizations to control and in real-time, by users
administer warehouse operations
from the time goods or materials enter Radio Frequency Identification: the
until they move out use of radio waves to read and
capture information stored on a tag
attached to an object, which can be
read from up to several feet away,
and doesn't need to be within direct
line-of-sight of the reader to be
tracked
Customer Relationship Management
(CRM) Software: a category of
software covering a broad set of
applications, designed to help
businesses manage many of the
following processes: customer data,
customer interaction, information
access, and sales automation
“Big Data”: extremely large data sets
that may be analysed computationally
to reveal patterns, trends and
associations, especially relating to
human behavior and interactions
Definition of Logistics Management
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.
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 is known as Logistics. The
movement and integration of supply chain activities is 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 competitive advantage.
3. There is only one organization involved in Logistics while a number of organizations 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.
