Tuesday, 11 March 2014

How to Distinguish the Difference between Supply Chain and Logistics Management

The definition of supply chain and logistics management may vary depending on companies.  Some believe the two functions overlap one another while experts claims that logistics management is a part of the supply chain management that meet the demands of consumers through the planning and implementation of the flow and storage of goods, services. The main difference between logistics and supply chain management is that logistics generally concentrate on the coordination and strategies between marketing and production while supply chain management focus on the purchasing and procurement of goods or/and services.

Supply Chain Management
When thinking about the supply chain management it’s important to remember it engages in all of the logistics management activities that involves in the procurement, conversion, movements and storage of raw materials. These including the factors relating to:
  • Inventory
  • Materials
  • Production planning
Supply chain management supports the business goal of net value and worldwide logistics through the design, planning, control, execution and monitoring of activities in the supply chain

Logistics Management
The business concept “logistics’ of having the right item in the right quantity at the right time and place was introduced in 1953.  The logistics management concept embraces factors relating to demand management and forecasting.  Logistics fulfill customer’s requirement by managing the flow of goods and the services between the points of origin to consumption. Some of the other names logistics management is also referred to include the following: 
  • Business or logistics management
  • Channel management
  • Distribution
  • materials management
  • supply chain management

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