Supply Chain Management versus Logistics

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Supply Chain and Quality Management > Best Practices > Supply Chain Management versus Logistics

Supply Chain Management versus Logistics
Shubhada, India, Member
What is the difference between supply chain management and logistics?
 

 
Speaking About Supply Chain Management
sweet bouras, etudiant, Albania, Member
I'm an a operation manager in valeo factory. I asked a friend (an engineer working on BMW supply chain in USA). She explained to me that supply chain is more global, it covers the product from its conception, the purchases of materials, to sale, including logistic traffics, and production.
 

 
SCM vs Logistics
Ernest Guzman, Professor, Philippines, Member
The definition is correct. To put it more clearly, logistics is part of SCM. SCM also includes the design, demand and sourcing management before the inbound of logistics. And SCM also includes (at the end) the outbound logistics, the distribution, retailing and consumer feedback to the product. Note that it does not intrude into marketing in that it only looks specifically at the technical issues of the product and not to the disciplines of marketing, design and costing.
 

 
The Field of Logistics
Pandurang Koppal
The field of logistics also includes: Insurance, Clearing & Forwarding and 3rd Party Logistics Control.
 

 
SCM vs Logistis
sachin shedge, Manager, India, Member
SCM covers many aspects such as PLAN, BUY, MAKE, MOVE, SELL whereas logistics covers only MOVE of material, service and information. Note that when we say 'move', we mean both storage and transportation.
SCM has a wide scope whereas logistics is a subset of SCM.
 

 
SCM vs. Logistics
Lameck Manda, Manager, Malawi, Member
Logistics is comprised of five main components: procurement, storage, transport, distribution and records.
Records are inside the other four components. Logistics is a component in SCM which starts from the sourcing point until when a product or service is delivered to the end user, not forgetting after sales services and feed back.
 

 
SCM vs Logistics
Jason C. Meyer, Student, United States, Member
I would highly recommend the book 'Purchasing and Supply Management' (The Mcgraw-Hill/Irwin Series Operations and Decisions Sciences) by Leenders, Johnson, Flynn and Fearon. It is one of the best SCM books that I've seen and well a lot of it is pretty weighty for beginners in the topic, it doesn't miss much as an overview.
 

 
Logistics and Supply Chain Management
Kasongo Chabwe, Zambia, Member
I still need more elaborate distinction between logistics and supply chain management.
It appears to me these two phrases are used interchangeably.
 

 
SCM vs Logistics Management
van Hooijdonk, Business Consultant, Netherlands, Member
In general they cover the same management topics (materials, information, and finances from supplier to customer), but SCM involves coordinating and integrating these flows both within and among companies.
SCM looks beyond your own organization, not investigating only your own logistics, but also from the supplier, customer, end-user, raw material supplier and everything in between. The goal of SCM is to integrate the logistics of various companies in a supply chain.
Investigating the SCOR Model will give a more clear understanding of SCM.
 

 
Logistics and Supply Chain Management
SRIDHAR S. RAO, Manager, India, Member
Supply Chain Management is from suppliers' supplier to customer's customer (end user) flow of material with value addition.
Logistics covers the assimilation of a product / service towards customer end.
 

 
Logistics & Supply Chain Management
Dolph Miller
I work as a management consultant at McLane Logistics Technology. Here is a simple difference between the two systems:
SCM: Supply chain management encompasses the entire process of manufacturing and distributing physical goods, from the first supplier to the end customer.
Logistics: Logistics management on other hand focuses on inbound and outbound transportation management, fleet management, warehousing, materials handling, order fulfillment, inventory management and management of third party logistics services providers.
 

 
Supply Chain Management versus Logistics
abdullahi salad, Student (MBA), Somalia, Member
I think supply chain management and logistics management are closely related in the organisation.
However, I agree that logistics management is a part of supply chain management. In scope, SCM is bigger than logistics management because SCM is aimed at many of the company's activities such as purchasing, transporting and the distribution of a product.
On the other hand, logistics management is about the efficient and effective movement of goods from the point of origin to the point of destination.
In conclusion, logistics management is a sub-function of supply chain management.
 

 
Logistics is a Component of SCM
Mzamane
I am currently studying supply chain management and I did logistic as a module in that course. I have also noticed that logistics is a part of SCM. In fact it is a component in SCM.
 

 
Supply Chain Management versus Logistics
Shams Quamar, Analyst, Member
Supply Chain Management (SCM) is a more generic term and it includes in it not only logistics but many other services as well.
 

 
Difference Between Logistics and Supply Chain Management
C.L. Kappagomtula, Professor, Malaysia, Member
Logistics primarily focuses on inbound transportation, storage and procurement and managerial phases of strategic planning and operational decisions. The focus is thus more on the internal organization to control cost, service, resource / asset utilization and quality. It is sort of “inward looking” in nature.
Logistics professionals are primarily concerned with Warehousing, Transportation, Inventory and Information.

Supply Chain Management is more “outward looking” and inter-organizational in approach. It involves collaboration, partnering and co-ordination across entities, serving the nodal organizations. Relationship management depends heavily on logistics effectiveness and efficiency. Supply Chain is therefore more strategic in nature and performs the specific functions of managing demand and supply.
Supply Chain professionals are concerned with relationship management by looking at the process and are hence behavioral in approach.
 

     
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