Difference between Logistics Management and Supply Chain Management

1. Logistics Management :

Logistics Management, as name suggests, is a part of supply chain management that mainly focuses on plans, effective flow, storage of goods and services, etc. 

Advantages of Logistics Management:

• Logistics Management is focused on the movement and storage of goods or services, ensuring that they are delivered to the customer in a timely, efficient, and cost-effective manner.
• Logistics Management provides visibility and control over the transportation and storage of goods, allowing for effective inventory management and the ability to respond to changes in customer demand.
• Logistics Management can help to reduce transportation costs, improve delivery times, and enhance customer satisfaction.

Disadvantages of Logistics Management:

• Logistics Management can sometimes result in a lack of coordination among different transportation providers, resulting in delays or quality issues.
• Logistics Management can sometimes result in a lack of control over external factors such as regulatory changes, weather events, or geopolitical risks.
• Logistics Management can sometimes result in a lack of integration with other functions within the organization, resulting in conflicting goals and objectives.

2. Supply Chain Management :

Supply Chain Management, as name suggests, is a management that mainly focuses handling entire product flow i.e. process of delivering product form raw material to consumer. 

Advantages of Supply Chain Management:

• Supply Chain Management is focused on the optimization of the flow of goods or services from the point of origin to the point of consumption, resulting in higher customer satisfaction and profitability.
• Supply Chain Management provides visibility and control over the entire supply chain, allowing for effective risk management and the ability to respond to changes in customer demand or supply disruptions.
• Supply Chain Management can help to reduce inventory costs, lead times, and other supply chain costs while maintaining quality and delivery performance.

Disadvantages of Supply Chain Management:

• Supply Chain Management can sometimes result in a lack of coordination among suppliers, resulting in delays or quality issues.
• Supply Chain Management can sometimes result in a lack of control over external factors such as regulatory changes, weather events, or geopolitical risks.
• Supply Chain Management can sometimes result in a lack of alignment among different functions within the organization, resulting in conflicting goals and objectives.

Similarities  between Logistics Management and Supply Chain Management :

• Both Logistics Management and Supply Chain Management involve the planning, coordination, and execution of activities to move goods or services from the point of origin to the point of consumption.
• Both require effective communication, collaboration, and teamwork among teams involved in the production, transportation, and delivery of goods or services.
• Both involve a customer-centric approach that aims to deliver value to the stakeholders.

Difference between Logistics Management and Supply Chain Management :

Logistics Management	Supply Chain Management
It mainly focuses on management of how resources are obtained, stored and transported to customer.	It mainly focuses on management of supply activity i.e. product flow to customers or consumers.
It includes activities like managing flow of goods and services, material handling, order fulfillment, inventory control, etc.	It includes activities like retail, manufacturing, returns, resale, demand management, forecasting, etc.
It includes various functions such as sourcing, production planning and scheduling, customer service, tracking and accounting, etc.	It includes various functions such as product development, marketing, customer service, operations, etc.
Its main objective is to make flow of product more effective and efficient to increase desired level of customer service.	Its main objective is to fulfill customer demand by making product, deliver it to appropriate location on given period of time with sufficient quantity and increase in competitive advantage.
Various logistic software available are EnVision, FreightMaster, ViewPoint Logistics, Acumatica ERP, etc.	Various supply chain software’s available are SAP, Oracle, JDA, HighJump, etc.
It is process of integration and maintenance i.e. flow and storage of goods within organization.	It is process of coordination and management i.e. movement of supply chains within organization.
It only include one organization.	It includes more than one organization.
Its benefits include increase customer satisfaction, costs savings, increase supply chain transparency, etc.	Its benefits include reduction in inventory costs, raise profits, boosts collaboration, create efficiencies, etc.

Conclusion:

Logistics management and supply chain management are both critical concepts in business management. While they share some similarities, they differ in their focus, scope, level of integration, and level of complexity. Understanding the differences between these two concepts is important to effectively manage the physical movement and storage of goods, services, and information, or the end-to-end flow of goods, services, and information across the entire supply chain.