Logistics and Supply Chain Management – The Differences and Why It Matters

Businesses and people across the world depend on goods and supplies; the chain of delivery and logistics required to source, organize and manage it all efficiently, are crucial to our way of life and work. And with globalization, systems and processes are becoming exponentially more complex; with this change, so too must our understanding of these practices evolve.

Supply chain management and logistics, while intertwined and often used in the same sentence to describe the whole process, are actually two, very distinct, things – both key to a professional in this field navigating their way to success.

If you’re currently enrolled in supply chain management courses or are considering supply chain and logistics training, you’ll want to understand these areas of focus and how they contribute to the whole and, ultimately, how they can assist you, and the companies you represent, in enhancing operations and customer service to gain the competitive advantage.

The Differences Between Supply Chain Management and Logistics and Why It Matters

THE DEFINITIONS

Supply Chain Management:

• Is the comprehensive, coordination of the production and delivery of goods and services to all types of customers.
• Includes all the high-level activities from sourcing and buying of raw materials to the completion of the finished products.
• Focuses on strategy and improving supply chain processes, that encompass and benefit business partners and customers.
• Involves overseeing networks of suppliers, sub-suppliers, logistics partners, manufacturers, distributors, retailers and end-users.

Logistics:

• An aspect of the of the supply chain, focused on the storing and delivery of finished services or goods to the customer – that could be a manufacturer, distributor or consumer.
• Driven by strategic goals to ensure goods and services are delivered to customers at a competitive price and on time.
• The coordination of people, facilities, equipment, and resources to drive the movement of goods and services, with efficiency and accuracy.
• Includes the consideration and overseeing of transportation, inventory management, handling of materials and fulfilling orders.

KEY DIFFERENCES

• SCM is top level, engaged overall in how all the pieces and processes of the system work together from start to finish. It is widespread and covers everything from production to planning of inventory and labour to materials and facility management, from development to delivery, all in a way that enhances customer satisfaction and business success to drive achieving a competitive advantage.
• Logistics, falls within SCM. Focuses on the specific details within the chain, centred on the movement, and transport of goods and honed in on efficiencies and ensuring the cost-effective delivery of supplies to the customer.

THE ESSENTIALS OF BOTH

• Logistics are essential within the SCM system. How effectively logistics are handled affects the proper timing and delivery of products, reduces costs, streamlines efficiency, helps retain and enhance customer relationships leading to loyalty, and lays the foundation for business success, building a reputation for quality service, care and delivery from point of origin to consumption.
• Success in this industry depends on the cohesive flow and connection between SCM and Logistics. SCM deals with the whole picture, from the planning and analysis of inefficiencies and targeting improvements to perpetually enhancing systems and processes, leading to customer satisfaction. Without well-oiled
• Logistics flow, from storage to movement, no matter how well thought out the SCM strategic goals may be, success couldn’t be achieved.
• Working in tandem, from the comprehensive to the minute details, SCM and Logistics together, lay the foundation for efficiency and gaining that competitive edge companies are looking for.

Now you’re in the know when it comes to the differences between, and the equally essential nature of, these SCM and Logistics areas of focus. Now perhaps it’s time to take the leap into a new career, or enhance the one you’re in.

This field is booming, exponentially growing, and in need of skilled professionals to the lead the way into the future. If you’re looking for a leading-edge program, known for its in-demand graduates, and are interested in logistics and supply chain management programs or getting your logistics and supply chain management certification, then do we have a pathway for you.

If you’re still not sure what your ideal program fit may by, then why not take the “Business Career Discovery Quiz”?

But when you are ready to start your Supply Chain and Logistics career, we’re here to help you navigate all the steps along the way to success. Book a virtual appointment with our Admissions team and let’s get you soaring in a thriving career, today.

Quick Links to Fuel Your Success!

We want to make sure you have what you need to succeed! Check out these reference links:

• Supply Chain and Logistics Program – Anderson College
• Inspiring Student Advice – Anderson College Blog Post
• Why CIFFA Certification is Essential for a Supply Chain and Logistics Graduate
• Your Thrilling Career in Supply Chain and Logistics – What You Should Know
• The Time is Now! – Help Meet the Demand, Become a Supply Chain Professional