A Guide To Contrast Between Logistics And Supply Chain Management

By Author: Kamal Bhatt
Total Articles: 69
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This is the era of retail and E-Commerce. With the growing e-commerce, every day, a new player is coming into the market, and this is leading to an increase in MBA graduates in Logistics and Supply Chain Management. MBA in Logistics and Supply Chain Management as a program is offered by various MBA colleges in Uttarakhand. The program teaches students everything about the process of the product cycle, starting from raw material accumulation to delivering the ultimate product in the market.

People often confuse Logistics and Supply Chain Management to be the same thing just because these two things come together into the course name. This read will help you to draw a contrast between the two terms or say the sectors. But before starting with it lets know what the popular program of MBA in Logistics and Supply Chain Management is all about.

What is MBA Logistics and Supply Chain Management?

MBA in Logistics and Supply Chain Management is a post-graduation management program. In this 2-Year program, students learn about various methods of management ...
... such as planning, implementation, administration, and movement of the product or service. This program incorporates topics such as – Liner Industry, Commercial Geography, Trade Operations, Implementation issues in Supply Chain Performance Metrics and Logistics Management, Modelling & Operational Strategic, and recent SCM trends.

What is Logistics and Supply Chain Management?

Logistics and Supply Chain Management in general terms can be explained as a process of collection of raw material and transforming them into the final product that further gets delivered in the market. Logistics is further divided into two categories.

Inbound Logistics is defined as the movement of raw material and goods from suppliers to a corporation
Outbound Logistics is defined as the movement of ultimate goods from a business to customers or consumers.
In simple language, we can define the whole process of Logistics and Supply Management as the movement of goods in a different form in a specific manner which is from -

Supplier - Manufacturer - Wholesaler - Retailer and eventually to the Consumer

Difference between Logistics and Supply Chain Management

Logistics management is a tiny portion of Supply Chain Management which includes the flow of services, goods, information, or even the capital right from raw material to its ultimate Consumer. At the same time, Supply Chain Management is a more comprehensive term that involves a lot of activities like sourcing of raw material, acquisition of consumer requirements, transformation into final products, and delivering ultimately to the Consumer (Logistics Management). Due to Visible Constraints, Innovations and New Technology and Internal Advancements; Supply Chain Management has emerged as an improvement over Logistics. The further are the points which will help you understand the difference between Logistics Management and Supply Chain Management.

The basic and the most crucial difference between the Logistics and Supply Chain Management is - Logistics is the integration and maintenance (flow and storage) of goods in an organization. But, on the other hand, Supply Chain Management is the coordination and management (movement) of the supply chains of an organization.

SCM involves planning, application, and effective storage of goods and services within the point of creation and point of consumption to satisfy customer requirements. Whereas the logistics include purpose is to deliver the right product at the right time with all other traits in place to its final destination.

One of the major differentiators for both, the domains is the objective of the processes involved where the objective of Logistics Management is customer satisfaction, on the other hand, the supply chain management stresses more on the competitive advantage.
Primarily to deliver goods or services to its ultimate destination; thus, the customers, only Logistics Management was applied whereas Supply Chain Management is a developed and modern concept of the same which along with the external also deals with the internal or organizational movement.

Another primary yet significant differentiation among the logistics and the supply chain management includes that the logistics management includes only one organization, whereas the supply chain management includes multiple organizations. With various organizations in supply chain management, involves the coordination and collaboration of parties like intermediaries, distributors, suppliers, and customers who are concerned with the Supply Chain Management process.

SCM involves a series of interconnected activities related to the movement of raw materials to the furnished goods within the organization but the Logistics Management involves segregated activities like warehousing, proper packaging, order delivery and management, stock administration, and stock control.

Logistics is an extremely old term though Supply Chain Management is a more advanced idea. Supply Chain Management is an expansion over Logistics Management where both supplement each other for the successful distribution of products and enterprises.

With the ever-expanding requirement for business leaders who can oversee complex global supply chain trends spanning around the world, professionals with efficient knowledge in supply chain management are provided with a significant competitive advantage. In this world of connectivity, speed, and advancement MBA in Logistics and Supply Chain Management from Best MBA College in Dehradun will help you lay the core strengths of Logistics, Operations, Supply Chain Management, and Business Analytics which will eventually help you emerge as the business leader of tomorrow.

Dev Bhoomi Institute of Technology (DBIT) is the genesis of Dev Bhoomi Group of Institutions. Established in 2005, with over 15 years of experience, it has set various benchmarks in engineering education and became one of the best engineering colleges in Dehradun. Apart from positioning itself as the quality education provider DBIT is acknowledged as the top placement engineering college across Uttarakhand.