Logistics Vs Supply Chain Management

In supply chain management, all activities involving sourcing, procurement, conversion, and logistics management are included. Coordination and collaboration with parties such as suppliers, intermediaries, distributors, and customers are paramount. In Supply Chain Management, Logistics Management is concerned with managing goods efficiently. Management of supply chains is a broader term which refers to the connections between the suppliers and, ultimately, the consumers.

In recent years, business has changed drastically in terms of how it is conducted. Technology advancements have led to the development of all key business areas. Likewise, Supply Chain Management has evolved from Logistics Management over the years.

Logistics Management integrates the movement of goods, services, information, and capital, starting with the sourcing of raw materials and ending at their final destination. In this process, the ultimate customer is provided with the right product at the right time and at the right place at the right price. In general, logistics activities fall into two categories:

Inbound logistics: The activities that deal with material acquisition, handling, storage, and transportation are referred to as Inbound Logistics

Outbound logistics: The processes involved in gathering, maintaining, and delivering goods to their final recipients.

In addition to these, other activities include stock management, protective packaging, order fulfillment, inventory control, and warehousing. Saving money and time while also producing high-quality goods are the results of this.

Supply Chain Management (SCM) is the process of managing the transformation and flow of raw materials into completed items up until they are delivered to the final consumer. The success of this chain of operations was the result of the efforts of numerous organisations.


These groups could include businesses that the organisation currently collaborates with as suppliers or partners, as well as producers, distributors, retailers, and customers. Integration, sourcing, procurement, production, testing, logistics, customer services, performance assessment, etc. may be included in the activities.

With a focus only on the needs of the customer, supply chain management uses a multi-faceted approach to control the movement of raw materials, works in progress, and finished items both inside the organisation and outside the organisation until they are received by the final consumer.


As the idea of supply chain management has developed, this phrase is now used in a variety of fields. It has also been claimed that SCM is a supplement to logistics management and that it includes logistics. Both are interdependent. As a result, they complement rather than conflict with one another. SCM enables Logistics to communicate with the team responsible for distribution, storage, and transportation.


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