What is Logistics Management? How is it different from Supply Chain Management?

 

Logistics Management and Supply Chain Management

Supply Chain Management and Logistics Management They are sometimes confused and used interchangeably. However, these processes are of two types. Supply Chain refers to a large network of organizations working together. To deliver products from suppliers to customers but on the other hand Logistics management It is the coordination and movement of resources and is part of the Supply Chain.

Logistics management focuses on the management of day-to-day operations which relates to the final product of the organization The main aim of logistics management It is the allocation of resources in the right amount at the right time Also make sure that it gets to the location in proper condition. While delivering to internal or external customers is correct.

 

What is Logistics Management? 

It was originally a military term referring to the movement of equipment and supplies to troops but at present logistics It is the name given to the part of the organization responsible for managing resources along the supply chain that require coordination and ensuring all materials and personnel are in the correct place and at the right time To ensure that the business is run properly

 

What is Supply Chain Management? 

Supply Chain Management is the process of planning, executing, and controlling all activities related to the movement of raw materials and goods from the point of origin to the customer. or from production to distribution By giving importance to adding value to customers at every step of the supply chain. To make the product or service the most valuable in the market

 

 

Logistics Management:

  1. Importance and role: Logistics Management focuses on managing the movement of goods and raw materials in the production process and delivering products to consumers. Emphasis is placed on warehouse management, delivery, trucking, and relationship management with related businesses.
  2. Work system and speed: Logistics Management focuses on managing processes related to moving goods quickly and efficiently. By using technology and good planning.
  3. Core Functions: The core functions of Logistics Management include warehouse planning and management. Ordering products Quality control, loading, shipping and customer relationship management.

 

Supply Chain Management:

  1. Supply Chain Overview: Supply Chain Management focuses on managing all processes involved in production. Procurement of raw materials, production, delivery and after-sales service
  2. Specifically integrated view: Supply Chain Management focuses on the integration and collaboration of manufacturers. Distributors and consumers to reduce costs, reduce time and increase efficiency.
  3. Relationships in the supply chain: Supply Chain Management focuses on controlling processes and information related to the movement of goods, delivery, and storage. and delivering products to customers

 

Different:

  • Logistics Management is part of the supply chain. Its emphasis is on transportation and warehousing processes, while Supply Chain Management focuses on the entire management of the supply chain, including control and management related to production. Procurement of raw materials and after-sales service
  • Logistics Management focuses on managing the business processes, while Supply Chain Management focuses on controlling and managing every step of the production and delivery of goods.

 

In summary, logistics management is a part of supply chain management, but Supply Chain Management is the entire management of the supply chain that focuses on improving the efficiency and total control of the processes in the production and delivery of goods.

 

Source: Logisticriverplus

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