When comparing the two: Supply chain management and logistics it sometimes gets a little blurry. Often times, logistics gets confused with supply chain management. They share a lot of the same characteristics and themes. Supply chain management is the big picture that logistics is painted into.
What is Supply Chain Management?
Supply chain management (SCM) refers to the planning of a product, essentially from the beginning to the end. It begins after the idea for a product begins to take form with planning. The process of planning said product involves many hands and many operations. Supply Chain Management may include product development, purchasing and sourcing, manufacturing and operations, logistics and distribution, customer service, and maybe even global development. The management of all of these departments both separately, and together is supply chain management. As you may have noticed, logistics falls into a category of this management.
What is Logistics?
Logistics is the movement of goods from the point origin to the point of consumption. Logistics involve the organizing of these goods and all the details that are involved in that transportation of those goods. The main idea behind logistics is to get a product to a customer, at the right time, in the right place, in the right amounts.
Inbound and Outbound Logistics
There are two basic logistic movements, inbound and outbound logistics. Inbound deals with activities that are relevant to obtaining goods and materials along with the handling, warehousing, and of course the transportation of these goods. Outbound logistics covers the collection and distribution of goods to the customer.
How Do Logistics play in Supply Chain Management?
How logistics play into Supply Chain Management has a lot to do with the type of business that is being managed. For example; for a furniture company, logistics may include assembly of parts, or warehousing and re-packaging as well as the transport of those goods. Whereas a clothing company may have everything ready to go, and just needs their clothing delivered. However, in both cases, the logistics involved are just a part of the big picture of Supply Chain Management.
We have seen big changes and small changes alike in both Supply Chain Management, and Logistics through years of business with many loyal clients. Logistical needs change and evolve as the market bends and stretches. Many logistics providers are offering more than they used to in years past. Perhaps that is why the line between logistics and supply chain management are getting a little confused. It's important to be clear early on in a logistics partnership about what is expected, and what is offered. It will be vital to the management of goods to keep clear communication at all times. Here at American Manufacturing Solutions, we make it our goal to make your logistics are great as they can be. We know it may just be a part of the big picture, but it’s our part, and we do logistics in the best way we know how. We do them right.
