Are logistics and supply chain management the same thing? How are they alike? How do they differ?

Hello Team,

The terms “logistics management” and “supply chain management” are easily confused. Each word is used to describe very similar functions and operations in the transportation industry. Most professionals in the US determine logistics as a subcategory of supply chain management.  However, in Europe, Logistics Management (LM) is considered to be a more widespread concept than Supply Chain Management (SCM). 

Logistics management:  Refers to managing the flow of goods, information and resources from the beginning point of external origin to the point of consumption and reverse. Logistics has a vital effect on shipped goods, and includes all activities involved in the shipping process. Logistics manages the flow within a company and between a company and its suppliers and customers. 

Supply chain management:  Is control over integrated network processes, providing the end customer with a product or service and meeting all his/her requirements. It includes numerous aspects of logistics management and demand planning which coordinates processes within and among companies.

Logistics Management is a small portion of Supply Chain Management that deals with management of goods in an efficient way. Although, if we talk about Supply Chain Management, it is a broader term which refers to the connection, right from the suppliers to the ultimate consumer. People are quite puzzled between these two concepts.

It has been noticed that, there has been a drastic change in the manner in which business is conducted many years ago and now. Due to the improvement in the technology, you can see all the areas of business has been developed. Supply Chain Management also evolved as an improvement over Logistics Management, from past years. Now coming to the point, let’s start understanding the difference between Logistics and Supply Chain Management