In other words, SCM sets the strategy and directs daily logistical activities that happen in factories, warehouses, local shipping centers and other facilities. SCM uses logistics to deliver goods to the consumer, but it ultimately strives to boost the bottom line and increase a business’s competitive edge. SCM includes the high-level processes involved in sourcing and buying raw materials and eventually creating finished goods. To learn more, read our article on inbound and outbound logistics. Logistics, meanwhile, moves and stores goods between different points in the supply chain. Additionally, SCM supports all purchasing, production and distribution of goods. While supply chain management handles activities between separate entities, logistics focuses on the internal movement of goods. The ultimate goal of SCM is to find processes that ensure a smooth, efficient flow of goods that give customers an excellent experience and drive the business forward. Supply chain management (SCM) is more comprehensive, covering all of the coordination between partners that have a role in this network, including sourcing, manufacturing, transporting, storing and selling. Logistics focuses on the movement and storage of items in the supply chain. When well executed, both supply chain management and logistics can give companies a competitive advantage and bring value to customers.Īre Logistics and Supply Chain Management the Same Thing?.A supply chain covers the production and delivery of goods and services to all types of customers.While many use supply chain management and logistics interchangeably, they cover different (but related) activities.The practice begins with raw materials, continues on to manufacturing and/or distribution and ends when a business delivers finished goods to the customer or when products are returned to their final destination. Supply chain logistics coordinate the storage and shipping of goods and services across the supply chain. How to Streamline Supply Chain Management with Logistics. ![]() ![]() Logistical Components of the Supply Chain.How Supply Chain Management and Logistics Are Different.Similarities between Supply Chain Management and Logistics.Understanding the role each plays can help companies make operational improvements, enhance customer service and build a competitive advantage. There are plenty of similarities between supply chain management (SCM) and logistics, but there are key differences that separate the two practices. East, Nordics and Other Regions (opens in new tab)
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