Group 6

Members:
Nguyen Thi Quynh Tam - 26
Nguyen Thi Lan Quynh - 24
Nguyen Huynh Phuong - 22
Pham Phu Hung - 10
Tran Thuc Nguyen - 16

Question 1.6. How do you view the statement “Logistics is not equivalent to supply
chain management”?
- Broadly speaking, logistics is different from supply chain, and in recent times the
difference has been established. Supply chain management focuses on coordination
among business functions such as marketing, production, and finance within and
across organizations. Logistics is identified as part of supply chain management and
can affect how well (or how poorly) an individual firm and its associated supply
chain(s) can achieve goals and objectives.
- Similarities of Supply Chain Management and Logistics:
+ Both supply chain management and logistics focus on the flow of goods from the
point of origin to the endpoint. Both disciplines require careful coordination of
supplies, labor and facilities to make sure items can move through the supply chain as
required. Logistics is a key component of supply chain management, but just one
piece of the equation.
+ Supply chain management and logistics both work to move, store and deliver goods as
efficiently as possible. Supply chain management provides the strategic direction that
guides inbound and outbound logistics.
- Differences of Supply Chain Management and Logistics: Supply chain management
outlines the strategy and activities that go into planning, sourcing, producing and
delivering goods, as well as handling returns. Logistics focuses on the right products
being in the right place at the right time, and how to get them there.
- Key differences between SCM and logistics include:
 + Logistics are activities in supply chain management. SCM covers a variety of
activities, including production and inventory planning, labor planning, materials and
facilities management, manufacturing and delivering goods and services.
+ SCM works toward improving processes to create competitive advantages, while
logistics emphasizes meeting customer needs and expectations.
+ Logistics focus on the efficient and cost-effective delivery of goods to the customer.
+ Supply chain management controls the development of raw materials into finished
goods that move from the supplier to producer to warehouse to retailers and/or
consumers.

Example: Consider the scenario of purchasing a new phone from an online store:
+ Logistics: Logistics encompasses the specific activities involved in the physical
movement and transportation of goods. In the context of buying a phone, logistics
would involve tasks such as ordering from the supplier, packaging the product,
arranging transportation (via air or ground) to the warehouse, and finally shipping the
goods from the warehouse to the customer's delivery address. Additionally, logistics
may include aspects like tracking and managing goods during transit. It primarily
focuses on the efficient execution of these tasks but doesn't address broader strategic
considerations.
+ Supply Chain Management: Supply Chain Management is a broader and more
strategic approach that encompasses the entire lifecycle of a product, from its
production to reaching the end customer. In the case of the phone purchase, supply
chain management would involve coordinating and optimizing various processes,
including sourcing raw materials for phone production, manufacturing, inventory
management, order fulfillment, and the overall distribution network. Supply chain
management aims to enhance efficiency and customer satisfaction by strategically
aligning and managing these interconnected processes, providing a holistic view of
the product's journey.