What's the Difference between Logistics and SCM?

Supply Chain Management (SCM) is known to be the management of network of interconnected businesses including processes required for product and service packaging to be used and employed by an end user.  Supply Chain Management spreads over all movement and storage of raw materials, work-in-process inventory, and finished goods from the place of origin to finally they are consumed. Whereas, Logistics is the systematic arrangement of the flow of goods, information and other resources between the point of origin and the point of consumption to meet out the needs of the consumers.

Logistics includes the integration of information, transportation, inventory, warehousing, material-handling, and packaging, and occasionally security. Logistics is known to be a channel of the supply chain that adds the value of time and place utility. Now-a-day complexity of production logistics can be modeled, analyzed, visualized and optimized by plant simulation software. Logistics management in itself is a part of the supply chain that plans, implements and controls the efficient, effective forward and reverse flow of storage of goods, services and related information between the point of origin and the point of consummation in order to meet out customer and legal needs.

When the  objectives of a supply chain are ascertained they includes objectives like   enhancing customer service, expanding sales revenue, reducing inventory cost, improving on-time delivery, reducing order to delivery cycle time, reducing lead time, reducing transportation cost, reducing warehouse cost, reducing / rationalize supplier base, expanding width and  depth of distribution.

If the objectives of logistic management are looked into they consist of the management of physical material flow processes and the information flows that influence over again those procedures. The main objectives there are understood as transportation policies, transportation routing and scheduling, shipment preparation, warehousing/distribution center scheduling, design and mapping, inbound/outbound design and mapping, material handling procedures including picking, packaging, deconsolidation and reconsolidation methods, as well as maintenance, labor and indirect material needs. However, with the cost prospective logistic management take care of entire cost mechanism.

However, despite all this discussion Supply Chain Management holds a superior position over logistic management with respect to the flow and design of physical material flow as process and many a time avoided by logistics. Supply chain management studies entire system and organization of material information and financial flows. Supply Chain Management credibly considers the entire system of processes that regulate material, information and financial flows looking at each process as a complete architecture.

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