It is easy to confuse the terms " logistics management " and " supply chain management. " Each word is used to describe very similar transport functions and operations. Most professionals identify logistics as a supply chain management sub - category.
Logistics management refers to managing the flow of goods, information and resources from the beginning point of external origin to the point of consumption and reverse. Logistics has a vital effect on shipped goods, and includes all activities involved in the shipping process. Logistics manages the flow within a company and between a company and its suppliers and customers.
Supply chain management is control over integrated network processes, providing the end customer with a product or service and meeting all his/her requirements. It includes numerous aspects of logistics management and demand planning which coordinates processes within and among companies.
Process of Logistic Management:
- Planning
- Scheduling
- Implementing
- Material handling
- Packaging
- Distribution
- Storage of Goods
- Coordination among carriers
- Fleet management
- Control Procedures
Process of Supply Chain:
- Logistics flows
- Customer Order Management
- Manufacturing
- Distribution
- Cost Allocation and Control
- Third Party Collaboration
- Management of Supply and Demand
- Negotiating Pricing
- Inventory Control
Logistics management tends to be seen mostly as transportation functions, focusing on short term goals.It concentrates on getting freight from point A to point B – on time and in the most cost-efficient way possible. It also includes creating partnerships with trucking companies. Supply chain management controls a broader number of functions and concentrates on achieving customer satisfaction and maximising profit in a long-term way. It covers management of supply and demand, control over cost allocation and all collaborations with 3PLs.
