Logistics And Supply Chain Management Difference

The purpose of logistics is to provide just in time delivery for the primary sake of customer satisfaction.

Logistics and supply chain management difference. Needless to say the responses were all over the map. Logistics management is a small portion of supply chain management that deals with management of goods in an efficient way. If your head is spinning like an 18 wheeler truck s tires at that description don t worry. Logistics management is a small portion of supply chain management that deals with the management of goods in an efficient way.

Supply chain management refers to the complete management of the flow of goods and services. Supply chain management it is a broader term which refers to the connection right from the suppliers to the ultimate consumer. Experts argue that logistics management is a part of the supply chain management that plans and implements the flow and storage of goods services in order to meet the demands of the consumers. It is the throughline that connects raw materials to customer experience.

Supply chain management involves the procurement of raw materials product development manufacturing and production logistics data management and more. It specifically refers to the planning implementing and controlling the efficient and effective flow of goods and services. Logistics and supply chain management are some terms that are prevalent and have been used in the modern world of business and other areas that involve several activities which include military operations among others. The goal of supply chain management is supply chain optimization for the sake of competitive advantage as in the most efficient and cost effective methods for those working within a supply chain.

Although if we talk about supply chain management it is a broader term. Logistics is a segment under the heading of supply chain management. Confusion over supply chain management and logistics. A simple google search confirms that a lot of confusion exists over the differences between supply chain management and logistics.

This is also an interesting difference between logistics and supply chain management.