Logistics vs Supply Chain Management

You may have heard terms such as “logistics and supply chain management,"  “supply chain logistics,” and “supply chain and logistics management." What’s the meaning? In particular, what exactly is the relationship between logistics and supply chain management?

Logistics should be understood as an important activity within the broader field of supply chain management. A logistician manages the movement and storage of specific items. A supply chain manager takes a bigger picture perspective, looking up and down the longer supply chain to coordinate more activities.

Let’s further explore how logistics relates to and compares to supply chain management.

Both logistics and supply chain management play critical roles in the smooth functioning of businesses. They’re essential to ensuring goods and services are delivered to customers efficiently and effectively.

Supply chain management involves coordinating and optimizing the various activities that take place in the supply chain, which includes everything from the raw material stage to the end consumer. This includes sourcing raw materials, production, distribution, and delivery of finished goods. The goal of supply chain management is to ensure that goods and services are delivered to customers in a timely and cost-effective manner.

Logistics refers to the process of planning, coordinating, and managing the movement and storage of goods, services, and information from the point of origin to the point of consumption. It involves the transportation, warehousing, and distribution of goods and services, as well as the handling of related information and documentation.

Logistics refers specifically to the movement and storage of products and information. Supply chain management involves coordinating and optimizing all the activities that take place in the supply chain, including logistics.

Logistics is a critical component of supply chain management, as it involves coordinating and optimizing the various activities related to the movement and storage of goods, services, and information within the supply chain. Supply chain management can be seen as a larger logistics problem.

Logisticians and supply chain managers are two important roles for ensuring the smooth functioning of businesses and the delivery of goods and services to customers efficiently and effectively.

A logistician focuses specifically on logistics activities, such as transportation, warehousing, and distribution. Meanwhile, a supply chain manager has a broader focus that includes coordinating and optimizing all the activities in the supply chain.

A logistician is a professional who specializes in logistics, which is the process of planning, coordinating, and managing the movement and storage of goods, services, and information from the point of origin to the point of consumption. A logistician may be responsible for tasks such as transportation planning, warehouse management, distribution, and the handling of related information and documentation.

A supply chain manager is responsible for coordinating and optimizing all the activities that take place in the supply chain, which includes everything from the raw material stage to the end consumer. This includes sourcing raw materials, production, distribution, and delivery of finished goods. The goal of a supply chain manager is to ensure that goods and services are delivered to customers in a timely and cost-effective manner.

Whether you focus on logistics or supply chains, the skills you need are quite similar. For that reason, supply chain and logistics management are often treated as a single field of study. When you earn a degree in this discipline, be it a bachelor’s or master’s degree, you’ll normally develop skills in the following areas:

Analytical skills: Students learn to analyze and interpret data such as transportation costs, inventory levels, and demand forecasts.

Communication skills: You’ll learn to effectively communicate with stakeholders, including suppliers, customers, and team members, using various mediums such as written reports and presentations.

Problem-solving skills: Students learn to identify and solve problems such as bottlenecks in the supply chain or capacity constraints.

Project management skills: You’ll learn methods to plan, coordinate, and manage logistics and supply chain projects, including setting objectives, creating project plans, and monitoring progress.

Leadership skills: Program participants may learn to lead and motivate teams and to make decisions that impact the success of business operations.

Knowledge of industry-specific technologies: Students gain an understanding of the technologies and information systems used in logistics and supply chain management, such as transportation management systems, warehouse management systems, and logistics networks.

Overall, a degree in logistics and supply chain management can provide you with a strong foundation in the principles and practices of the broader discipline, as well as a range of transferable skills that are valuable in relevant careers.

Information technology (IT) plays a critical role, helping to improve the efficiency and effectiveness of business operations. Technology enables the collection, storage, and analysis of data, as well as the automation of processes. Specific ways in which IT is used in logistics and supply chain management include: