Logistics is that part of the supply chain process that plans, implements, and controls theefficient, effective flow and storage of goods, services, and related information from the point-of-origin to the point-of-consumption in order to meet customers' requirements.
“Efficient Management of the Supply Chain (source, make and deliver) in order tomaximize the value for money to the customer”.In other words Supply Chain Management means integration and management of SupplyChain organization and activities through coordinated and collaborative strategicalliances, efficient business processes and high levels of information sharing to create avalue chain that would provide member organizations a sustainable competitiveadvantage and in turn provide value for money to the customer. Instead of brand versus brand or store versus store, it is now supply chain versus supply chain. In this emerginghighly competitive and dynamic environment, the ultimate success of the Business entitywill depend on management's ability to integrate the company's complicated network of business relationships. The graphic will explain the process of Integration in the SupplyChain network.The broader view of SCM is depicted in the above figurein a simplified supply chainnetwork structure. This would explain the basic difference between Logistics and SCM.Supply Chain is inter-company integration of business process and relationships andwhere as Logistics is intra-company integration.A Working Definition of Supply Chain Management:We can define the supply chain as the flow of information and material to and fromsuppliers and customers. The objectives of Supply Chain Management (SCM) are to:Maximize supply chain responsiveness and flexibility to customers,Minimize total supply chain cycle time, costs, inventory, and;Maximize supply chain capacity, utilization, and Return on Assets (ROA).There are four fundamental operating principles at work in SCM :