Is Supply Chain Management the Same as Logistics?

supply chain management industries

Supply chain management and logistics are two terms that are used interchangeably. The field of logistics is included in supply chain management, and logistics is a collection of sub-processes inside SCM. Many of these functional areas, such as purchasing, materials handling, logistics, transportation, inventory control, and supply chain management, have continued to expand, causing many of them to intersect. Logistics is the part of supply chain management industries.

What is logistics?

Logistics is a part of the supply chain process that organizes, implements, controls the efficient, effective forward and reverse flow and storage of goods, services between the point of origin and consumption. The goal of logistics is to ensure that the consumer obtains the required goods at the appropriate time and location, with the appropriate quality and price. Inbound logistics and outbound logistics are the two subcategories of this procedure.

Inbound logistics

The operations involved in obtaining materials, managing, storing, and transferring them are referred to as inbound logistics.

Outbound logistics

Outbound logistics refers to the tasks of collecting, maintaining, and distributing goods to customers.

Logistics also includes processes, like packing and fulfilling orders, warehousing, stock management, and ensuring supply and demand equilibrium.

What is supply chain management?

Supply chain management industries working together to connect suppliers, customers, and other partners to increase efficiency and provide value to the end-user. The risk of several companies working together as a supply chain assists regulates the flow of raw materials and ensure that the finished goods are valuable.

Key differences

  • Supply chain management is a method of connecting business operations within/across organizations, to create a high-performance business model that generates a competitive advantage.
  • The transportation, storage, and flow of commodities, services, and information within and beyond an organization is known logistics.
  • The primary goal of a supply chain is to gain a competitive edge, whereas the primary aim of logistics is to meet consumer needs.