What is the difference between Logistics and Supply Chain Management

BLOGTEAM

October 11, 2019

Logistics management is a small portion of Supply Chain Management which combines the flow of goods, services, information and capital right from raw material to its final consumer. While Supply Chain Management is a broader term which is associated with the sourcing of raw material, procurement of consumer requirements, conversion into final products and delivering on time at consumer end (Logistics Management). Due to External Constraints, Innovations and New Technology and Internal Advancements; Supply Chain Management has evolved as an improvement over Logistics. This article will help you understand the difference between Logistics Management and Supply Chain Management.

  • The basic difference between Logistics and Supply Chain Management is that Logistics management is the process of integration and maintenance (flow and storage) of goods in an organization whereas Supply Chain Management is the coordination and management (movement) of supply chains of an organization.
  • Another difference between Logistics and Supply Chain Management is that the objective of Logistics Management is customer satisfaction while Supply Chain Management emphasizes more on competitive advantage.
  • Earlier to deliver any goods or services to its final customers only Logistics Management was applied whereas Supply Chain Management is an evolved and modern concept of the same.
  • Another difference between Logistics Management and Supply Chain Management is that Logistics Management involves only one organization whereas multiple organizations (coordination and collaboration of parties like suppliers, intermediaries, distributors and customers) are involved with Supply Chain Management.
  • Another most important difference between Logistics Management and Supply Chain Management is that Logistics Management is a small part of Supply Chain Management whereas Supply Chain Management is a new and modern concept.
  • The difference between SCM and Logistics is that Supply Chain Management (SCM) involves the planning, implementation and effective storage of goods and services between the point of origin and point of consumption to meet customer requirements. Whereas Logistics Management’s main objective is to deliver the right product at the right time with all other attributes in place.
  • Another difference between SCM and Logistics is that Supply Chain Management (SCM) is a series of interconnected activities related to the movement of raw materials to finished goods until it reaches the end-user. Whereas Logistics Management involves activities like warehousing, proper packaging, order fulfilment, stock control and stock management.
  • Another difference between SCM and Logistics is that Supply Chain Management is a broader term which refers to the connection with the suppliers to the ultimate consumer. Whereas Logistics Management is associated with only maintenance and storage of goods.
  • Logistics is a very old term whereas Supply Chain has evolved as a new concept. Supply Chain Management is an addition over Logistics Management where both complement each other for effective distribution of goods and services.

With the ever-increasing need for business managers who can manage complex global supply chain trends spanning around the world, effective supply chain management is considered to provide an essential competitive advantage. Indian Institute of Management, Udaipur started the one year MBA in Global Supply Chain Management.

In the world of connectivity and speed, specialization in global supply chain management would enable students to understand the logistics, production and processes involved in the business. The unique one-year MBA in Logistics and Supply Chain Management / MBA in Supply Chain Management is for experienced professionals focused on Supply Chain Management. With the objective of developing the business leaders of tomorrow, the Institute is seeking candidates with more than three years of experience.

This unique program lays the core strengths of Operations, Supply Chain Management, and Business Analytics. IIM Udaipur’s MBA in Logistics and Global Supply Chain Management demands equal academic rigour and uses the same grading criteria as a two year MBA. It is uniquely conceived to ensure professionals acquire the business tools, global mindset and interpersonal skills to pursue their careers. Applications for the batch of 2020-21 are now open.