COMPARISON BETWEEN LOGISTICS AND
SUPPLY CHAIN MANAGEMENT
Logistics management is a small portion of Supply Chain Management which combines the flow
of goods, services, information and capital right from raw material to its final consumer. While
Supply Chain Management is a broader term which is associated with the sourcing of raw
material, procurement of consumer requirements, conversion into final products and delivering
on time at consumer end (Logistics Management). Due to External Constraints, Innovations and
New Technology and Internal Advancements; Supply Chain Management has evolved as an
improvement over Logistics.
[Link] Logistics Supply Chain Management
1. Logistics management is the process of Supply Chain Management is the coordination
integration and maintenance (flow and and management (movement) of supply chains
storage) of goods in an organization. of an organization.
2. The objective of Logistics Management Supply Chain Management emphasizes more
is customer satisfaction. on competitive advantage.
3. Earlier to deliver any goods or services Supply Chain Management is an evolved and
to its final customers only. modern concept.
4. Logistics Management involves only It involves Multiple organizations
one organization. (coordination and collaboration of parties like
suppliers, intermediaries, distributors and
customers) are involved with Supply Chain
Management.
5. Logistics Management is a small part Supply Chain Management is a new and
of Supply Chain Management. modern concept.
6. Logistics Management’s main Supply Chain Management (SCM) involves
objective is to deliver the right product the planning, implementation and effective
at the right time with all other attributes storage of goods and services between the
in place. point of origin and point of consumption to
meet customer requirements.
7. Logistics Management involves Supply Chain Management (SCM) is a series
activities like warehousing, proper of interconnected activities related to the
packaging, order fulfilment, stock movement of raw materials to finished goods
control and stock management. until it reaches the end-user.
8. Logistics Management is associated Supply Chain Management is a broader term
with only maintenance and storage of which refers to the connection with the
goods. suppliers to the ultimate consumer.
9. Logistics focuses on the efficient and Supply chain management targets higher
cost-effective delivery of goods to the operational performance that will give the
customer. business a competitive advantage.
10. Logistics are centered on the movement SCM oversees the development of raw
and transport of goods within a materials into finished goods that move from
company the producer to the manufacturer. Those goods
get distributed to retailers or directly to
consumers.