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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.

Key facts
TermSupply chain and logistics management
In Hindiआपूर्ति श्रृंखला और लॉजिस्टिक्स प्रबंधन
AreaBusiness
Search phrasesupply chain and logistics management
Try itProcurement 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 managementLogistics management
ScopeSuppliers to customers, end to endMovement and storage of goods
Main decisionsWhat to buy, make and stock; which suppliersWhich transport, route, warehouse, packing
Typical measuresOTIF, inventory days, supplier lead timeFreight cost, transit time, damage rate
Time horizonMonths to yearsDays 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.

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