Supply chain logistics is a term that is integral to most business ventures. Essentially, these two terms are similar in more ways than one. Both SCM that is supply chain management and logistics management deal with everything, from acquiring the raw materials to the final delivery of the finished product to the customer. Irrespective of whether it is a tangible item or a mode of service, this process remains the same. At the same time, there are some fundamental differences between the two. So if you are interested to know how exactly supply chain and logistics management differ, read on to find out.
WHAT ARE THE KEY DIFFERENCES BETWEEN SCM AND LOGISTICS?
Supply Chain Consulting Firms, that advise and help their clients to enjoy a smooth manufacturing process also offers logistics services. The primary difference lies in the fact that logistics is a subpart of the supply chain that is focused on getting the final product successfully to the client within the stipulated time whereas the Supply chain deals with the intricacies of this very activity. Their job does not end after delivery though. In cases of damaged goods or unsatisfied clients, the return and refund for the same are also included under SCM. Some of the chief points of variation are mentioned as follows.
1. LOGISTICS SUBSET OF SUPPLY CHAIN MANAGEMENT: As mentioned before, the supply chain is a much broader spectrum that has many parallel undertakings going on simultaneously. Labor planning, technology platform, inventory analysis as well as optimization of logistics all come under this heading.
2. APPROACH TOWARDS THE COMPANY: Logistics Consulting firms are more focused on maximizing the profit for the business establishment making the transportation cost-effective. supply chain aims at accentuating the operational efficiency of the house.
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