Logistics and supply management help businesses stay competitive.
Logistics and supply management track and coordinate the efficient and cost-effective movement of goods and services, which is key to an organization’s profitability.
Logistics management is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverses flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers’ requirements.
Supply chain management is an integrating function with primary responsibility for linking major business functions and business processes within and across companies into a cohesive and high-performing business model.
It includes all of the logistics management activities as well as manufacturing operations, and it drives coordination of processes and activities with and across marketing, sales, product design, finance, and information technology.
The basic difference between logistics and supply chain management is that logistics management is the process of integration and maintenance (flow and storage) of goods in an organization. This contrasts with supply management in that supply chain management is the coordination and management (movement) of supply chains of an organization.
Additionally, the objective of logistics management is customer satisfaction while supply chain management focuses more on competitive advantage.
However, logistics and supply management also have similarities. Both supply chain management and logistics focus on the flow of goods from the point of origin to the endpoint.
Both disciplines also 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.
Want to learn more? Tonex offers Logistics and Supply Management Training Crash Course, a 4-day course that covers main elements of acquisition logistics as a multi-functional, technical management discipline associated with the design, development, test, production, fielding, sustainment, and improvement modifications of DoD systems.
Learn how the majority of a system’s life-cycle costs can be attributed directly to operations and support costs once the system is fielded. Also learn about principal objectives of acquisition logistics.
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