Logistic Vs Supply Chain Mgmt

Supply chain management normally involves purchasing the raw materials from the vendors, then manufacturing the products into finished goods, then passing them to wholesaler, retailer and finally to the consumer. The activities and the elements involved in the supply chain are customer, planning for the production, purchasing the raw materials, inventory management, final production, transportation of the products to warehouse and finally delivery of the products to the customers. The supply chain starts and ends with the customer. The complexity of the supply chain depends on the size of the business and numbers of items that are manufactured.

Logistics for a business includes physical distribution, material handling, packaging, warehousing, freight transportation, sales order processing, inventory planning and production planning. Logistics is a channel of the supply chain which adds the value of time and place utility. The logistic management is also known as materials management or channel management. Aim of the logistics is to maximize profits, minimize costs and improve customer service for one activity in the supply chain.

Supply chain management is the process that covers the whole business activities from the purchase of the raw materials from the suppliers or vendors to the delivery of the final products to the customers. The logistics are the part or parts in the supply chain and focus on material handling, stocks, and movements in one part of the supply chain. The logistics can be equal with the supply chain management when one calls it as the total logistics management or integrated logistics management.