What is Logistics Management and Supply Chain Management? | Logistics and SCM Differences

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.

Supply Chain Management

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

Key Differences between Logistics and Supply Chain Management

+ 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.

+ The main aim of Logistics is full customer satisfaction. Conversely, the main aim behind Supply chain Management is to gain substantial competitive advantage.

+ There is only one organisation involved in Logistics while a number of organisations are involved in Supply Chain Management.

+ Supply Chain Management is a new concept as compared to Logistics.

+ Logistics is only an activity of Supply Chain Management.

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 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.

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