Difference between Logistics and Supply Chain Management

Contrary to supply chain management, logistics first came into play in the early 1950’s. It deals with managing the succession of goods between the point of the departure and the point of arrival. Logistics involves compacting the information and the actual business aspect of the transaction. This includes factors such as: transportation, material handling, packaging, and security measures. The essence of logistics is vital, because without it the routing, scheduling, preparation, distribution, plan, procedures, departure and arrival times of the physical materials being shipped from point A to point B might be distorted.

Essentially, supply chain management and logistics go hand in hand, small details mark the bold differences. The overall spectrum is controlled by the supply chain management team, being that they are not only responsible for achieving customer satisfaction ultimately but also contributing to maximization of profit. Logistics is like the small puzzle piece fitting precisely into the supply chain management picture, being that it takes into account the projection of each step prior to the time of arrival of the expected product. Logistics and Supply Chain Management do not intertwine, in definition. None the less, mutual contribution by both leads to more than just shipping.

Supply chain management is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers. Ultimately the goal of managing the supply chain is providing excellence to customers by moving the product to the final destination and making it a priority to meet all requirements set forth by customers. This makes it possible for the business details to be monitored from an overall depth. From financial aspects, to how accurate the information is given and to how intricate the organization is. All the movement involved begins from the moment a customer agrees to do business. Like the term suggests, it’s a chain!