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.
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.
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.|