Logistics vs supply chain
”Logistics Management is a major part of Supply chain Management, while supply chain management is a holistic and relevant approach.
What is supply chain management?
Supply chain management is about providing more value to our customers and improving competitiveness.
Supply chain management is a system of people activities and information and resources involved in moving a product or service from supplier to customers. Supply chain activities include a finished product or raw material that is delivered to the end customer.
Supply chain management works tirelessly to secure its resources with the best value. Successfully incorporating supply chain management creates a new kind of competition in the global market. And it is seen that the competition here is not as a company-versus-company, but as a supply-chain-versus-supply-chain.
The primary purpose of supply chain management is to meet the demands of customers through the most efficient use of resources, including deliverability, invention, and labor.
As a rule, supply chain management matches demand with supply. Eliminates the problem by collaborating with suppliers in various aspects to supply chain management
The strategy of supply chain management is to strike a balance between the lowest material cost and transportation.
Applying just-in-time technologies to optimize the manufacturing flow and maintain the right mix of factories and warehouses to serve customers is the job of supply chain management.
The real idea behind SCM is to keep companies and businesses involved in a supply chain by informing them about the ups and downs of the corporate market and production capabilities.
What is Logistics Management?
Logistics is critical to your overall supply chain management efforts. After all, if your company is not able to verbally move your product from Point A to Point B, it will not happen that your business will not be successful. But, supply chain management involves a lot more than just delivering your product.
Logistics involves improving the inter-specific and tangential aspects of manufacturing, warehousing, distribution and supply, which maximizes your organization’s productivity and helps your business grow in the true sense.
Logistic management is a small part of supply chain management that manages goods in an efficient manner. However, if we talk about supply chain management, it is a broad term, which deals with suppliers to the end consumer. People are quite surprised between these two concepts.
Difference between supply chain management and logistic management.
- Logistics Management> The process of integrating the movement and maintenance of goods inside and outside the organization.
- Supply Chain Management> The coordination and management of supply chain activities is known as supply chain management.
- Logistics Management> works on customer satisfaction.
- Supply chain management works for> competitive advantage.
- Logistics management is a part of supply chain management.
- Supply chain management is a new version of logistics management.
The logistics management process that integrates the movement of goods, services, information and capital, and until it reaches its end consumer, is known as logistics management.
The motive behind this process is to provide the right product with the right quality at the right time to the customer at the right price. Logistics activities are divided into two categories:
- Inbound Logistics: Activities that use goods procurement, handling of goods, stores and transportation.
- Outbound Logistics: Collection, maintenance and distribution activities for the end consumer.
Apart from this, there are other activities such as warehousing, protective packing, order fulfillment, stock control, demand and supply, stock management to balance between all these and its cost and time saving, high quality products etc. are also taken care of is. . is.
Definition of supply chain management.
Supply chain management (SCM) is a series of modifications and interaction activities from raw materials to finished goods, until the goods reach the end user.
This is the result of the efforts of many organizations, which helped to make this series of activities successful.
These organizations may include many companies with whom they work as suppliers, manufacturers, wholesalers, retailers, and consumers. Activities include integration in supply chain management, sourcing, procurement, production, testing, logistics, customer service, performance measurement and more.
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