What is the Difference Between Logistics and Supply Chain Management?

The main difference between logistics and supply chain management lies in their scope and focus. Here are the key differences between the two:

Scope: Supply chain management is an overarching concept that links together multiple processes to achieve competitive advantage, while logistics refers to the movement, storage, and flow of goods, services, and information within the overall supply chain.
Focus: Supply chain management covers a variety of activities, including sourcing, processing, and delivery of goods to the end customer. Logistics, on the other hand, specifically focuses on moving and storing goods between different supply chain stages.
Role: Logistics is a core component of successful supply chain management, but it is not the supply chain itself. Supply chain management provides the strategic direction that guides inbound and outbound logistics.
Activities: Logistics activities include transportation management, inventory management, warehousing, and packaging. Supply chain management encompasses several additional activities, ultimately covering the entire lifecycle of any given product, from sourcing to delivery.

In summary, logistics is a part of the supply chain, focusing on the movement and storage of goods, while supply chain management is a broader concept that includes logistics as well as other activities related to the overall sourcing, processing, and delivery of goods.

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What is the Difference Between Logistics and Supply Chain Management?

Comparative Table: Logistics vs Supply Chain Management

Here is a table comparing the differences between logistics and supply chain management:

Aspect	Logistics	Supply Chain Management
Definition	Logistics refers to the process of managing the transportation and storage of goods, ensuring they reach the right destination at the right time.	Supply chain management (SCM) is the coordination and orchestration of the entire supply chain, from sourcing to production planning to inventory and order management.
Focus	Logistics is customer-centric, focusing on meeting customer needs and expectations.	SCM is organization-oriented, working towards improving processes to create competitive advantages.
Scope	Logistics is a component of supply chain management, concentrating on the transportation and storage of goods.	SCM is a broader concept that encompasses the entire flow of goods, including logistics, sourcing, production planning, and inventory management.
Objective	The primary goal of logistics is to cater to customer needs and create satisfaction.	The primary goal of SCM is to streamline processes, reduce costs, and enhance the overall efficiency of the supply chain.
Activities	Logistics activities include managing inventory flow from suppliers, delivering final products to customers, and making transportation and warehousing decisions.	SCM activities involve tracking the real-time flow of information on raw materials and finished goods, negotiating sourcing with vendors, complying with regulatory norms, and ensuring ongoing coordination between sourcing, manufacturing, marketing, and logistics teams.

In summary, logistics is a part of the supply chain management process, focusing on the transportation and storage of goods, while supply chain management has a broader scope, encompassing the entire flow of goods and working towards improving processes to create competitive advantages for the organization.

Guilherme Mazui

Guilherme Mazui is graduated in journalism from the Federal University of Minas Gerais (UFMG) and a master's degree in Communication from the University of São Paulo (USP). In addition, he has experience in advertising writing and has worked as a content editor in several companies.