Logistics vs. Supply Chain Management: What's the Difference?

Due to innovations, new technology, internal advancements, and external constraints, Supply Chain Management has developed as an improvement over Logistics. Both of these terms are advantageous for a variety of Applications & softwares for businesses as well as are, at times, utilized interchangeably. Think of the supply chain as the network of suppliers, manufacturers, retailers, and wholesalers etc., instead of a series of particular functions. While, on the other hand, logistics is more instantly tangible as it applies to the activities that are involved in transferring goods from one point to another within the supply chain. 

All in all, Logistics is the fraction of the Supply Chain Management as the latter is an umbrella term utilized for defining a whole business philosophy, including every external and internal supply chain procedure which also involves logistics. 

Let’s understand, in a bit detail, the differences between logistics and supply chain management –

• The objective of Supply Chain Management is attaining competitive advantage while Logistics Management focuses on enhancing customer satisfaction. 
• Another distinction between the two is that Logistics Management includes only a single enterprise while with Supply Chain Management, multiple enterprises (collaboration and co-ordination of parties such as intermediaries, suppliers, customers, and distributors) are involved. 
• Earlier, Logistics Management was applied for delivering any services or goods to only its ultimate customers, whereas now Supply Chain Management has become a modern and evolved concept of the same. 
• The Logistics Manager is responsible for monitoring the vendor selection as well as negotiation, transportation, inventory control, and distribution while the Supply Chain Manager monitors and manages the performances and qualifications of the vendor for ensuring the fact that they cater to the requirements of the Company. 
• One of the most important distinctions between these 2 terms is that Supply Chain Management is the broader phrase that refers to the link with suppliers to the final customer. On the contrary, Logistics Management is related to only storage and maintenance of the goods. 

Logistics and supply chain management will forever be associated since they don’t contradict but supplement each other. However, it is inevitable that everybody on your external and internal teams utilizes the right terminology for avoiding disruptions and confusion which could result in wasted money and time as well as upset the customers. Needless to say, you should not use these terms interchangeably as one procedure can’t occur without the other one.