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Jan 25, 2024
Logistics is the way of transporting materials, goods, or services from one place to another. Supply chain management is logistics on a much larger scale. It includes logistics sourcing of raw materials, acquisition of customer requirements, and many more. Supply chain management also handles things like inventory control, warehousing logistics, and transportation logistics.
Supply chain management and logistics are very similar but have some differences. They both work together to accomplish tasks in a company or organisation. Although many people may sometimes use these terms interchangeably, they represent different aspects of the business world due to their distinct responsibilities within an economy.
The supply chain management and logistics industry also have long-term opportunities for growth with room for advancement. This blog will further elaborate on why choosing a career path in logistics and supply chain management is worthwhile.
Supply chain management is managing a company's supply chain activities to gain more value and create competitive advantages. It involves streamlining all business flow from raw materials to final products, aiming for customer satisfaction and success.
SCM is a set of practices where companies can cut excess costs and deliver products faster to the consumer. It is done by maintaining tighter control over internal inventories, production, distribution, sales and inventory from company vendors.
In supply chain management, five components make up the core concept. These traditional systems include:
Logistics and supply chain are merely co-relating concepts in the bigger picture. However, in technical terms, logistics is a small section of supply chain management, where it combines the flow of goods and services.
The significant difference between them is that logistics is the process of integration and management involving the storage of goods in reorganisation. In contrast, supply chain management is the process of coordination and management of goods. More specifically, it consists of the movement of supply chains in an organisation.
The difference between logistics and supply chain management is given in the table below:
| DIFFERENCES | LOGISTICS | SUPPLY CHAIN |
| Definition |
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| Process |
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Supply chain management is a new concept that is packed with a series of related activities. So why is Supply Chain A Great Career Path is answered through the given below benefits:
Logistics management is a crucial part of supply chain management, helping businesses manage their movement and storage procedures to meet customer demands. Logistical processes reduce expenses and enhance customer service through information planning, control implementation, and auditing.
You can simplify logistics management to the goal of moving products and resources efficiently. It is essential because customers expect faster, more efficient service, ensuring they get what they need when it matters most.
Logistics management is an old concept that affects the distribution of goods and services. The modern era crafted logistics into a complex term that complements supply chain management. It is now termed the process of managing resource acquisitions, storage and transportation to its final destination.
The benefits of studying logistics management are given below:
To Sum Up
Companies that want to stay competitive and profitable in the marketplace need a robust supply chain management system. Supply chain management is an important field that ensures the flow of goods and services from their origin to needed. Logistics involves coordinating shipments, space in warehouses, transportation routes, etc. To choose logistics and supply chain management courses, you need to be organized with strong interpersonal skills like effective communication and negotiation abilities. You also need analytical thinking skills for problem-solving, which can help you deal with unexpected circumstances.
