Define Supply Chain Management and Identify The Difference Between Supply Chain and Logistics

Define Supply Chain Management and Identify The Difference Between Supply Chain and Logistics
Supply chain management and logistics are two essential terms in the business.

Supply chain management is the management of the goods and services of an organization. On the other hand, logistics is the name of the movement and storage of the products of an organization. There are some differences between supply chain management and logistics that have been discussed in detail in this informative post by a Masters Dissertation Writing Services Providers company in the UK.

What is supply chain management?

SCM (Supply Chain Management) is an essential term in Commerce which is relevant to the management of goods and services. Combinations of the processes in which we transform the raw material into final products also come into supply chain management. With the help of the supply chain management, it is possible for us to streamline the activities of a business and to gain an advantage over the competitors in the market. The members of the supply chain management are responsible for the production, shipment, and distribution of the different products of a company. With the help of supply chain management, it is also possible for us to cut the excessive costs of the products and to deliver these products to the customers as soon as possible. Five steps of the supply chain management are given below;

  • Devise a clear plan or strategy
  • Make a list of the possible sources
  • Prepare a manufacturing plan
  • Prepare a logistics plan
  • Prepare a plan for the returning of the products

What is Logistics?

Logistics is a military-based term. In the military, this term was used for the obtaining, moving and storing the equipment from one step to another step. In the business, this term is used to identify the prospective distributors and suppliers that are helpful to increase the accessibility and effectiveness of the products. In other words, the main aim of logistics in business is to use the resources at the right time and to deliver the products at the right location for the easy access of the customers. If we take an example of the natural gas industry, logistics means the management of the pipelines and distribution of the gas to the people.

Difference between supply chain management and logistics

Supply chain management and logistics are two essential terms in the business. There are some differences between supply chain management and logistics. These differences are explained below;

  • The first difference between supply chain management and logistics is that these two terms have different meanings. Logistics means to store and flow the products of a company within the company or outside of the company. On the other hand, the activities that are devised to control and integrate these activities of the products come into supply chain management.
  • The objectives of these two terms are also different from each other. The objective of logistics is to satisfy the customers. On the other hand, the objective of supply chain management is to compete with other companies.
  • There is also a difference between the evaluation of supply chain management and logistics. Its reason is that logistics is a military term and it was used in the military for a long time ago. We are also using it in the business filed in a similar sense. On the other hand, the concept of supply chain management is quite new in the field of business.
  • In logistics, only one organization is involved. Its reason is that in the logistics, you will have to work for the progress of only one organization. Therefore, there is no need to take an overview of the strategies of other organizations. On the other hand, in supply chain management, you will have to compete with other organizations. This is possible only if you are taking an overview of other organizations too. It means that the concern of the logistics is only with one organization. On the other hand, the concern of supply chain management is with multiple organizations.
  • Logistics and supply chain management also depend on one another. Logistics is known as the fraction of supply chain management. On the other hand, supply chain management is known as an extension or new version of the logistics.

This is the basic difference between logistics and supply chain management. Now, we can say that both logistics and supply chain management are essential for the progress of an organization.

Conclusion

Supply chain management is the name of the management of the goods and services of an organization. On the other hand, logistics is the name of the movement and storage of the products of an organization. There are some differences between supply chain management and logistics. First of all, these two terms have different definitions. Secondly, these two terms have different objectives. Thirdly, the concern of logistics is only with one organization. On the other hand, the concern of supply chain management is with multiple organizations. At last, these two terms also depend upon each other and these terms are essential for the progress of an organization.

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