What is Logistics?

- Logistics is the process of planning and executing the efficient

transportation and storage of goods from the point of origin to the point of
consumption. The goal of logistics is to meet customer requirements in a
timely, cost-effective manner. Originally, logistics played the vital role of
moving military personnel, equipment and goods. While logistics is as
important as ever in the military, the term today is more commonly used
in the context of moving commercial goods within the supply chain.
https://searcherp.techtarget.com/definition/logistics

What is Supply Chain Management?

- Supply chain management is the management of the flow of goods and

services and includes all processes that transform raw materials into final
products. It involves the active streamlining of a business's supply-side
activities to maximize customer value and gain a competitive advantage in
the marketplace. SCM represents an effort by suppliers to develop and
implement supply chains that are as efficient and economical as
possible. Supply chains cover everything from production to product
development to the information systems needed to direct these
undertakings.
https://www.investopedia.com/terms/s/scm.asp

Supply Chain Management (SCM) is a series of interconnected activities related

to the transformation and movement from raw material to the finished goods till it
reaches to the end user. It is the outcome of the efforts of multiple organizations
that helped in making this chain of activities successful.

These organizations may include the firms with whom the organization is currently
working like partners or suppliers, manufacturers, wholesalers, retailers and
consumers. The activities may include integration, sourcing, procurement,
production, testing, logistics, customer services, performance measurement, etc.

Supply Chain Management has a multi-dimensional approach which manages the

flow of raw materials and work in progress (semi-finished goods) within the
organization and the end product outside the organization till it reaches the hands
of the final consumer with a complete emphasis on the customer requirement.

https://www.linkedin.com/pulse/difference-between-logistics-supply-chain-management-
sanjeev-608716146594344
Difference between Logistics and Supply Chain Management

- Logistics Management is a small portion of Supply Chain Management that

deals with management of goods in an efficient way. Although, if we talk about
Supply Chain Management, it is a broader term which refers to the connection,
right from the suppliers to the ultimate consumer. People are quite puzzled
between these two concepts.

It has been noticed that, there has been a drastic change in the manner in which
business is conducted many years ago and now. Due to the improvement in the
technology, you can see all the areas of business has been developed. Supply
Chain Management also evolved as an improvement over Logistics Management,
from past years. Now coming to the point, let’s start understanding the difference
between Logistics and Supply Chain Management.