Is Logistics and Supply Chain Management same?
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General <p class="mb-4" style="font-size: 17px; line-height: 20px; color: #424242;"></p><p>The terms Logistics and Supply chain are used interchangeably sometimes. </p><p>Supply Chain is and end to end process starting from the procurement of raw materials till the delivery of finished goods. Supply Chain Management takes care of the overall inbound and outbound process. It has Purchasing, materials handling, logistics, transportation, inventory control, and supply chain management included and working as a team one another. This intersection of different departments has resulted in bring a confusion between logistics and supply chain management definition.</p><p>Whereas Logistics is the geographical repositioning of goods from the point of origin the the point of consumption.</p><p>These two terms have some similarities but the core concept is different.</p><p>Supply Chain is a process of linking multiple process to achieve competitive advantage, while logistics is the storage, movement and flow of goods, service and information within the supply chain. </p><p>What is Supply Chain Management?</p><p>It is the management of a number of organizations or teams working together as a supply chain helping to manage the flow of raw materials and produce finished goods of sellable value. It is the responsibility of Supply chain managers s to ensure that a finished product not only reaches the end consumer but also meets all expectations of the customers as well. Logistics is just a part of the larger, all-encompassing supply chain network.</p><p>What is Logistics?</p><p>It includes planning, implementing and controlling the efficient and effective forward and reverse flow and storage of goods, services and information between the point of origin and the point of consumption to meet the customer requirements.</p><p>Logistics is of two types: Forward Logistics and Reverse Logistics</p><p>Forward Logistics is management of forward movement of goods as they transition from raw materials to end-consumers. Reverse logistics is a type of supply chain management that moves goods from customers back to the sellers or manufacturers</p><p>The goal of logistics is to make sure the customer receives the desired product at the right time and place with the right quality and price. This whole process can be divided into two subcategories: inbound logistics and outbound logistics.</p><p>Inbound logistics includes the activities includes procuring materials and then handling, storing and movement of goods. Outbound logistics includes the activities concerned with the collection, maintenance and distribution to the end customer. Other activities like packing and order fulfilment, warehousing, managing stock and maintaining the balance between supply and demand also factor into logistics.</p><p>Key Differences</p><p>When it comes to Logistics and Supply Chain one process cannot exist without the other. Here are some key differences between the two terms that will help you in better understating</p><ul> <li>Supply chain management links major business processes within and across companies into a high-performance business model that drives competitive advantage</li> <li>Logistics is an activity within the supply chain.</li> <li>Logistics refers to the movement, storage, and flow of goods, services and information inside and outside the organization.</li> <li>The main focus of supply chain is a competitive advantage, while the main focus of logistics is meeting customer requirements.</li> <li>Logistics is a term that has been around for a long time, while supply chain management is a relatively new term.</li></ul><p>Technologies used in Supply Chain Management and Logistics are</p><ul> <li>Enterprise Resource Planning (<a href="https://www.investopedia.com/terms/e/erp.asp" target="_blank">ERP</a>) software: It is similar to a central nervous system, for a business, as it collects information about the activity and state of various divisions of the business</li></ul><ul> <li><a href="https://www.epc-rfid.info/rfid">Radio Frequency Identification</a> (RFID ) : It uses radio waves to read and capture information stored on a tag attached to an object, which can be read from up to several feet away.</li> <li><a href="https://www.webopedia.com/TERM/C/crm_software.html" target="_blank">Customer Relationship Management (CRM) Software</a>: CRM is a category of software including a broad set of applications, designed to help businesses manage many of the following processes: customer data, customer interaction, information access, and sales automation</li> <li>Big Data : extremely large data sets that may be analysed to reveal patterns, trends and associations, especially relating to human behaviour and interactions</li></ul><p>Logistics :</p> <ul> <li>Transportation Management System (<a href="https://searcherp.techtarget.com/definition/transportation-management-system-TMS" target="_blank">TMS</a>): It is a logistics platform helping users to manage and optimize daily operations of the transportation fleets</li> <li>Warehouse Management System (<a href="https://searcherp.techtarget.com/definition/warehouse-management-system-WMS" target="_blank">WMS</a>): It is a software and processes to control and manage warehouse operations from the time goods or materials enter the warehouse until they move out for delivery.</li></ul> <p></p>
Frequently Asked Questions
Are logistics and supply chain management the same thing?
No, they are different. Supply chain management is an end-to-end process involving the flow of materials from procurement to delivery, while logistics focuses specifically on the movement and storage of goods within the supply chain.
What is the main focus of supply chain management?
The main focus of supply chain management is to link various business processes to achieve a competitive advantage, ensuring that the final product meets customer expectations while moving efficiently through the supply chain.
What are the different types of logistics?
There are two main types of logistics: Forward Logistics, which involves the movement of goods from raw materials to end consumers, and Reverse Logistics, which deals with the return of goods from customers back to sellers or manufacturers.
What are inbound and outbound logistics?
Inbound logistics refers to activities related to procuring materials and managing their movement and storage, while outbound logistics pertains to the collection, maintenance, and distribution of finished products to end customers.
What technologies are used in logistics and supply chain management?
Key technologies include Enterprise Resource Planning (ERP) software, Radio Frequency Identification (RFID), Customer Relationship Management (CRM) software, Big Data analytics, Transportation Management Systems (TMS), and Warehouse Management Systems (WMS).