The Differences between Logistics Management and Supply Chain Management

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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.

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