Supply Chain and Logistics Management: Differences
Definition
Supply chain management plans and coordinates everything from sourcing raw material to delivering the finished product to the customer, across suppliers, factory and customers. Logistics management is the part of it that moves and stores goods — transport, warehousing and delivery.
| Term | Supply chain and logistics management |
|---|---|
| In Hindi | आपूर्ति श्रृंखला और लॉजिस्टिक्स प्रबंधन |
| Area | Business |
| Search phrase | supply chain and logistics management |
| Try it | Procurement software |
आपूर्ति श्रृंखला और लॉजिस्टिक्स प्रबंधन — हिंदी में अर्थ
सप्लाई चेन मैनेजमेंट कच्चा माल ख़रीदने से लेकर तैयार माल ग्राहक तक पहुँचाने तक की पूरी योजना और तालमेल है। लॉजिस्टिक्स मैनेजमेंट उसका वह हिस्सा है जो माल को लाने-ले जाने और रखने का काम करता है — परिवहन, गोदाम और डिलीवरी।
What each one covers
Supply chain management: demand planning, supplier selection and purchasing, production planning, inventory policy, and the agreements that tie suppliers, plant and customers together. It answers what to buy, make and hold, from whom, and when.
Logistics management: inbound freight from suppliers, receiving and storage, internal material movement, packing, outbound transport, delivery and returns. It answers how goods physically get where they are needed, at what cost and on time.
How they connect
Logistics executes what the supply chain plan decides. A good plan fails if trucks are late, and fast trucks cannot fix a plan that ordered the wrong material. That is why both are measured together: on-time-in-full (OTIF) delivery, inventory days, freight cost as a percentage of sales, and supplier lead time.
In a manufacturing business
For a make-to-order factory the supply chain runs from the sales order through the BOM, purchase, receipt and production to dispatch. An ERP keeps these on one record — CRE8Rx ERP carries a project from quotation and sales order to purchase, GRN, production, the dispatch challan with transporter, LR number and freight, and installation.
Supply chain vs logistics
| Supply chain management | Logistics management | |
|---|---|---|
| Scope | Suppliers to customers, end to end | Movement and storage of goods |
| Main decisions | What to buy, make and stock; which suppliers | Which transport, route, warehouse, packing |
| Typical measures | OTIF, inventory days, supplier lead time | Freight cost, transit time, damage rate |
| Time horizon | Months to years | Days to weeks |
Related tools and guides
Frequently asked questions
What is the difference between logistics and supply chain management?
Supply chain management is the whole chain from sourcing to customer. Logistics is the part of it that transports and stores the goods.
Is logistics a part of the supply chain?
Yes. Logistics is one function within supply chain management, alongside purchasing, planning and production.
What are the main activities of logistics management?
Inbound freight, receiving, warehousing, material handling, packing, outbound transport, delivery and returns.
How do you measure supply chain performance?
Common measures are on-time-in-full delivery, inventory days or turnover, supplier lead time and freight cost as a share of sales.
Related terms
- Capex vs opexCapex (capital expenditure) is money spent on long-term assets such as machinery or buildings; it is capitalised and depreciated. Opex (operating expenditure) is the day-to-day cost of running the business — wages, power, rent — and is charged to profit in the year.
- Cost-based pricing (cost-plus pricing)Cost-based pricing sets the selling price by working out the full cost of a product or job and adding a fixed percentage or amount for profit. The best-known form is cost-plus pricing: price = cost × (1 + markup %).
- Customer relationship management (CRM)Customer relationship management (CRM) is the practice — and the software — of recording every interaction with leads and customers in one place, so that enquiries are followed up, deals are tracked to an order and customers are kept.
- Customer service (after-sales)Customer service is the help a business gives its customers before, during and after a sale — answering questions, fixing problems and keeping promises. For a manufacturer the larger part is after-sales service: complaints, repairs, warranty, maintenance and spares.
- EPF payment online (EPFO portal)EPF payment online is the monthly process in which an employer uploads the Electronic Challan cum Return (ECR) for its employees on the EPFO Unified Portal, generates a challan and pays the PF contributions by net banking — due by the 15th of the following month.
- ESIC payment onlineESIC payment online is the monthly process in which an employer files each covered employee's days worked and wages on the ESIC employer portal, generates a challan and pays the ESI contributions — employee 0.75% and employer 3.25% of gross wages — by the 15th of the following month.