Differences Between Logistics and Supply Chain

1. Goals and Aims of Logistics and Supply Chain Management

One of the major difference between logistics and supply chain management is their intended

goals and objectives within an organization. The goals and objectives of logistics within an

organizational department is ensuring that customers attain maximum satisfaction during

their interactions with the organization. Logistical officers ensure that anything that is needed

by the customers is accessed with ease and it is acquired in the right quality and quantity. On

the other hand, supply chain management has the goal and objective of ensuring that the

company achieves a competitive and comparative advantage through effectiveness and

efficiency. More importantly, supply chain management ensures that the company procures

laws materials at lower prices while selling finished goods at the highest prices possible.

2. Organizations Involved Logistics and Supply Chain

The number of organizations involved is another aspect that can be used to highlight the

difference between logistics and supply chain management. Logistics is involved in a single

organization because there are no logistical activities that are required when one company is

interacting with the other company. Logistical operations are confined and restricted to an

individual organization and the customers willing to cooperate with the team. On the other

hand, supply chain management is involved with multiple agencies that are interacting with

the company on a daily basis. It is important to highlight that supply chain management must

interact with organisations supplying raw materials, companies delivering or transporting

finished goods, and companies purchasing their finished products.

3. Evolution and Development of Logistics and Supply Chain

The evolution and development of logistics and supply chain management form one of the

fundamental differences between the two terms. According to historians, logistical

 management has existed for a lengthy period and has passed the test of times since it

currently exists despite development in technology. Historians highlight that logistics was

prevalently used in traditional empires for military operations and involved transportation of

both firearms and military personnel among others. On the other hand, supply chain

management is a modern aspect that emerged in the 19th century. The aspect has grown to the

point that it is currently being incorporated in all business organizations and government

departments. Moreover, supply chain management is a stand-alone department within the

company and a course by itself in different learning institutions around the world.

4. Departments and Sections of Logistics and Supply Chain

The number of departments and sections involved in logistical management and supply chain

management shows some significant number of differences between the two practices. It is

worth noting that the number of sections in supply chain management is higher as compared

to those in the logistical department because supply chain management is involved and

interacts with multiple organizations. Some of the sections within logistical management

include inventory, warehousing, and transportation. Supply chain management has a

significant number of sections, which include product development and testing, customer

service and satisfaction, integration and information sharing, logistical activities, performance

measurement, and procurement and manufacturing among others.

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5. Relationship with One Another

There exist a significant relationship between logistical management and supply chain

management. Although many people think that they are different departments with each

entitled to handle its activities, the logistical department is a section of the supply chain

management that handles specific tasks. It is important to highlight that logistical the supply

chain department can handle activities without interfering or lowering the quality of the
 services offered by this administration. This explains why some organizations do not have

operational, logistical department but have operational supply chain management department,

which handles logistical issues.

6. Relationship with Other Departments

Similar to their interactions with other organizations where supply chain management can

interact with multiple companies, it looks like supply chain management has an edge when it

comes to cooperation with other departments within the organization. The logistical

administration does not have active roles in different departments while supply chain

management has a high probability of participating in affairs of other agencies through

research, marketing, and ordering raw materials for manufacturing department.