Logistics vs Supply Chain Management

Difference Between Logistics and Supply Chain Management

Logistics and Supply Chain Management (SCM) are both significant parts of the whole eCommerce process. Without both of them working effectively, the product will not be properly delivered to the end customer. So, it’s important to understand the meaning, similarities, relationship, and the difference between both of them and how do they contribute in the whole online business process from order confirmation to the final delivery.

What is Meant by Logistics and Supply Chain Management

To put it simply, logistics management is a part of the entire process of supply chain management. It is known as the process that involves the movement of goods or services from the warehouse to the doorstep of the end customer. On the other hand, supply chain management is a broader term that consists of various processes, including, taking raw material from suppliers, manufacturing, storing, shipping, and delivery.

Relationship Between Logistics and Supply Chain Management

Both of these are inter-related to each other. Supply chain management refers to the management of information, products, and finances when they are moving from the supplier, manufacturer, wholesaler, and retailer to the final customer. Logistics management, on the other hand, refers to the process of planning, controlling, and implementing the procedure for a seamless delivery of those products from the point of origin to the doorstep of the customer.

Difference and Similarity Between Logistics and Supply Chain Management

On a broader level, the process of supply chain management includes segments, such as product development, integration, manufacturing and procurement, storage of goods (such as raw materials and finished products), logistics, customer service, and performance management. On the contrary, logistics consist of segments like inventory management, warehousing, and transportation of the goods to the customers.

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Puneet Bhalla

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