How are logistics and supply chain management different?

Logistics and supply chain management are similar in that they're both about managing a process. But they're also different because Logistics Specialists focus on the movement of goods, while supply chain management focuses more on the process of creating and delivering those goods to customers.

 

Differences between Supply Chain Management and Logistics 

Logistics -  

 

• One activity in supply chain management is logistics.
• Logistics is concerned with the movement and transport of goods within a business.
• The military pioneered logistics. Many consider Alexander the Great, who was born in 356 B.C., to be a logistics master.
• Logistics is concerned with the timely and cost-effective delivery of goods to customers.

 

Supply Chain Management – 

 

• SCM manages the transformation of raw materials into finished goods as they move from producer to manufacturer. These items are then distributed to retailers or directly to customers.
• The modern supply chain management practice began in the twentieth century. The concept was perfected on the production lines of Ford Motor Company. Many credit logistician Keith Oliver with coining the term in the early 1980s.
• Supply chain management encompasses a wide range of activities, such as planning, sourcing materials, managing labor and facilities, and producing and delivering goods and services.
• Supply chain management aims for higher operational performance to give the company a competitive advantage.

 

Role of Logistics in Supply Specialist Chain Management

 

Logistics in supply chain management is in charge of the movement and storage of goods and services, as well as the documents and reports that document those movements throughout an item's journey to the customer.

 

Logistics refers to the various transportation methods used to move inventory from one location to another. This component is in charge of determining where goods can be stored at each stage until they are needed at another location, which is critical for the effective supply chain management.

 

The Importance of Logistics in Supply Chains 

 

Logistics is a critical component of supply chains because it manages and tracks the people and resources required to store and transfer goods and services. Logistics ensures that materials and products arrive on time and within budget.

There are several aspects of logistics that support supply chains, including:

• Timely delivery of the right products.
• Delivery of goods to the customer's location from the most cost-effective location for production.
• Increasing efficiency and reducing costs.
• Businesses can gain a competitive advantage by providing a unique value proposition.

 

A successful supply chain is based on both logistics and supply chain management

 

Logistics Specialists and supply chain management both support customer needs and improve the purchasing experience. Logistics gives immediate feedback on customer demand. This data is used by SCM to understand what consumers want and to plan production and inventory levels.

Reliable, low-cost logistics pave the way for the effective supply chain management. A well-managed supply chain results in orders being filled accurately and on time, which attracts new clients and increases the bottom line over time.

 

Many businesses have realized the value of using supply chain management software to help mitigate supply chain complexities and challenges. This software can help organizations meet rising customer expectations while keeping costs stable by unifying various aspects of the supply chain, from sourcing to production planning to inventory and order management. It can also provide detailed reporting on various aspects of your operations, highlighting opportunities for process improvement or drawing attention to potential issues.

 

Conclusion - Now that you know the difference between logistics and supply chain management, you can use that knowledge to get a leg up on your competition in the industry. Companies are always looking for ways to streamline their processes, and knowing the key differences between logistics and supply chain management can benefit you when it comes time to make decisions about how to manage your company's shipping strategies. And now you can go with the best logistics service provider in India and boost your business and always be one step ahead of your competitors.