Is there a difference in the supply chains
Logistics or Supply Chain Management?
Logistics and supply chain management are both part of the logistics industry. But what exactly is the difference? We answer these questions and more in this article.
At a time when trade and shipping are becoming more and more important, logistical processes are indispensable. Goods and information have to be perfectly coordinated when they arrive at the customer, and many different processes are necessary for this. Logistics and supply chain management both deal with the Value and supply chain and enable the efficient process from delivery of raw materials to dispatch.
Logistics and supply chain management, isn't that the same thing? The answer is no. Logistics and supply chain management are very similar in their areas of responsibility and in degree courses in logistics, such as in the degree in logistics management. Supply chain management is also part of the course content. However, there are some differences. You can find out what these are and what exactly logistics and supply chain management involve in the further course of the article.
Logistics is responsible for the cross-company flow of information and goods. It includes the planning and control but also the coordination and implementation of processes along the entire value chain.
Logistics describes the delivery processes within a company and includes the next service provider. Processes such as purchasing, processing and coordination as well as the implementation of a delivery process are part of it. This means that logisticians control that the flow of goods and information is guaranteed at all times and that customer requirements are met.
An example: A company makes toys. This requires raw materials such as plastic, paints or fabrics. A logistician in this company monitors when the goods are delivered, what quality they are and whether they are suitable for their own production. But he also coordinates the manufacture of the toys and the subsequent shipment to the dealers or end customers.
Curious? We give you more information about the logistician profession, the logistician salary and explain how you can become a logistician. How about, for example, a degree in logistics with a focus on trade or an information logistics degree?
What is supply chain management?
Supply chain management describes the planning and control of processes along the entire value and supply chain from the supplier to the end customer. The focus is on the optimization of costs and processes, as well as on preventive error minimization.
Supply chain managers are responsible for the logistical processes, but have additional tasks. They analyze the various sub-processes, identify potential errors and look for ways to prevent them. In addition, the focus of the area of responsibility is the costs and the control of the goods or information. Supply chain managers are therefore not responsible for the specific supply chain, but primarily for the concept, cost minimization and controlling. Specific goals of supply chain management are, for example, increasing delivery reliability, shortening throughput times and reducing storage costs.
Here is an example too: The toy company has certain procedures for making toys. A supply chain manager checks the various processes, pays attention to the quality of the toys and makes sure that the associated machines and processes are up to date. In addition, he minimizes the costs of production and raw materials and takes on measures to optimize the entire supply chain.
Tip: Would you like to become a supply chain manager directly and are you looking for a suitable degree or information about the supply chain manager salary? Then we offer all the information about the Supply Chain Management course, distance learning course Supply Chain Management or Master's Supply Chain Management.
What is the difference between logistics and supply chain management?
Since logistics and supply chain management are very similar in many areas, it is not that easy to understand what the differences are. Basically you can remember:
Logistics only deals with that logistic aspect the value chain and supply chain management also pay attention to the Minimizing costs and optimizing processes.
But now again in more detail:
logistics is important to guarantee that everything in the value chain works as it should. Raw materials must be delivered on time and of high quality, and the deadlines for production or processing must be adhered to. The dispatch of the goods or information must also run smoothly.
Supply chain management however, refers to the overall process. Is the process working? Where are there opportunities to optimize and improve? Can costs be saved and is it worth buying more expensive software or hardware, for example, in order to increase efficiency? It is important to a supply chain manager that the goods or information arrive at the end user on time and in perfect quality, but the focus is on error prevention, optimization and cost control.
At first glance, the difference may seem very small, but in practice logistics doesn't work without a supply chain manager and vice versa. Logistics and supply chain management mesh like gears and ensure that there is a flow of goods, money or information that is constantly improving and satisfying all customers.
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