Whereas supply chain management manages activities between separate entities, logistics focuses on the internal movement of goods. In addition, SCM supports all purchases, production and distribution of goods. Logistics, on the other hand, moves and stores goods between different points in the supply chain. Logistics is mainly concerned with organizing the distribution, shipping and storage and preparation of orders in an efficient manner.
It comes from the “Maréchal des Logis”, a military term coined by Napoleon for his army. Literally, he is the person who organizes “accommodation” in the army, a housing marshal. As Napoleon once said: “L'intendance suivra, which means don't bother,” logistics specialists will organize food and accommodation backstage. Both supply chain management and logistics encourage the creation of products or services for customers.
The supply chain focuses on how to create the product and deliver it to the customer. Logistics focuses solely on how to deliver the product to the customer. Logistics and SCM share the common goal of ensuring that products are delivered to customers without problems. Logistics refers to the transportation, storage and coordination of goods, while SCM covers these activities and much more.
In other words, logistics is responsible for getting the right product to the right customer at the right time. A supply chain can include many different types of logistics and logistics companies, all dedicated to helping the supply chain run smoothly. Supply chain management is related to the entire journey of a product or service, from the moment it is conceived until it reaches the customer. While the overall supply chain is responsible for market success and revenues, logistics plays a critical and central role in ensuring that raw materials, parts and finished products flow smoothly through the global supply chain.
However, some would say that operations management is the foundation of both supply chain management (SCM) and logistics. While logistics deals with the transportation and storage of goods, supply chain management encompasses a wider range of activities, including the sourcing of raw materials, manufacturing and distribution. In essence, supply chain management integrates supply and demand management within and between companies. Blume Logistics creates a solid network for logistical bidding, monitoring, event capture, POD verification and initiation of liquidation.
Efficient supply chain management improves a company's competitiveness by increasing product quality, cutting-edge sales and on-time delivery. Supply chain management can marginally increase efficiency by automating the entire process, eliminating waste, and reducing the time needed to complete tasks. Supply chain management (SCM) is defined as the process of planning, executing and controlling operations that bring goods and services from suppliers to customers. Logistics managers are typically responsible for transportation, warehousing and customer service, while supply chain managers oversee the entire process and develop strategies to streamline operations and reduce costs.
With inbound logistics, supply chain managers can control the movement of goods into the organization.
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