Most skills and competencies needed to excel in logistics and supply chain are same skills needed for disaster management .
So, From this quote we can tell how important logistics and supply chain are for the organization they cannot be neglected for management
There are ample number of similarities between supply chain and logistics , but there are key differences that separate the two practices. Understanding the role of each can help the companies make improvements, enhance customer service and build a competitive advantage.
What is logistics in logistics and supply chain?
Logistic is generally the detail, organization and implementation of complex operations in journal business sense. Logistics, the management of flow of things between the point of a region and the point of consumption to meet the requirements of customers or corporation.
Leader’s Tip
Comprehend the difference between logistics and supply chain, which covers the complete process from sourcing through delivery of products, resources, information, and activities.
In other words, the goal of logistic management is to have the right amount of resource or input at the right time. And, Getting it to appropriate location in proper condition and delivering it to the correct internal or external customers.
What is supply chain in logistics and supply chain?
Supply chain is a network between a company and its supplier to produce in distributor specific product to the final buyer. Furthermore, It includes network, different activities, people, entities, information and resources. It also represents the various steps taken to get the product or services from its raw state to the end customer.
Supply chains involves a series of steps involved to get the product or service to customers. The steps include moving in, transforming the raw materials into the finished final products, and then transporting those products and distributing them to the end customer. Certainly, The entities involved in the supply chain includes producer vendors, warehouses, distribution centre transportation companies and retailers.
What is the difference between supply chain and logistics?
Objective
The objective of logistic is customer satisfaction. But the objective of supply chain is a competitive advantage. Competitive advantage refers to factors that allow computer videos, goods or services better, more cheaply than its rivals.
Evolution
The concept of logistics has been involved earlier Whereas supply chain is a modern concept.
Subset
As mentioned, logistic is a subset or small part of supply chain. In contrast, supply chain is a new and a broad concept.
Software
Another key difference between logistic and supply chain is the terms of software they use. Logistic includes TMS, that is transport management system and warehouse management system and software to track inventory. Supply chain on the other hand involves a range of IoT solutions and software like enterprise resource planning, radio frequency identification for tracking, CRM software and big data analytics, among others.
Well, it is correct that logistic is technically a subset of supply chain. It is misleading to only consider logistic in term of supply chain. The magnitude of consequences associated with logistic practices is too great and too essential to the whole of a supply chain. Most important Logistic is a distinct part of supply chain and essential to good supply chain performance. A supply chain may have many diverse types of logistics. In logistic companies to serve specific needs, all of which design to help the supply chain run smoothly. However each logistic operation is already responsible for that service with which they have particular expertise, often making them a self -contained part of supply chain.
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Leader’s Tip
Foster collaboration and integration among various stakeholders in logistics and supply chain management to maximise efficiency and save costs.
So, these were the differences between the two terms which explains the relationship between them
FAQs
What is relation between logistics and supply chain?
Logistic focuses on the movement and storage of production supply chain. This means that logistics focuses on internal movement of goods. Logistic is an aspect of supply chain that stores or delivers finished goods or services to customers. In other words, logistic is a subset of supply chain.
What are objectives of logistics?
The main objective of logistic management is to execute proper planning on transportation modes and inventory available to satisfy the customer. This leads to smooth movement and the delivery of products.
Key Takeaways
- Logistics focuses on the actual transportation and distribution of commodities, whereas SCM includes all phases of the manufacturing and distribution process.
- Supply chain management necessitates the coordination and integration of several operations, including logistics, to maximise the efficient movement of products and data along the supply chain.
- A long-term and strategic approach is taken in supply chain management, with an emphasis on relationships, risk management, sustainability, and happy customers. Logistics is mainly concerned with day-to-day processes.
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