How Logistics and Supply Chain Management are different from each other?
Every one of the exercises, related to the sourcing, transformation and logistics management, goes under the supply chain management. Most importantly, it includes the coordination and cooperation with the suppliers, intermediaries, distributors, and clients. However, Logistics Management is a small part of Supply Chain Management that deals with the administration of goods and products proficiently. Let us take a look at how Logistics and Supply Chain Management are different from each other:
The objective of Supply Chain Management is to have the item promptly accessible when the consumer is prepared to buy it, at a value they are willing to pay. Fruitful supply chain management likewise brings about lower costs, as makers and providers team up to ceaselessly to enhance their procedures in order to convey better items faster and at cheaper prices.
Logistics and supply chain management differ in the scope of their objectives. Logistics Management consists of exercises required for an item or material’s origin/takeoff to its last point of arrival. In the middle of it, are variables to be overseen, for example, transportation, packaging, and warehousing.
Only a single organization is involved in Logistics Management, while multiple agencies are involved when it comes to supplying chain management.
The main aim of supply chain management is to gain that extra competitive edge in the market with continual process improvement and customer services. Logistics management, however, aims at providing full customer satisfaction.
Holistic v/s Detailed Operations
Logistics management involves a holistic view of all operations without paying attention to individual problems in detail. Supply Chain Management however considers and takes into account all individualized issues along with discrete processes necessary for product formation.
Essentially, logistics and supply chain management go hand in hand, with the overall spectrum under the control of supply chain management and logistics is a piece of the entire puzzle. To a certain extent, both of them intertwine and mutually contribute to the entire process of transportation, customer satisfaction and the overall increase in a firm’s profitability or earning capacity.