Respected RG scholars,
Industrial Engineers often use Logistics and Supply Chain interchangeably to describe the same business operations. I need highlight on the key differences between logistics and supply chain management. Can someone be of help?
To offer a different way of looking at these, look for Michel Porter Value-added model, who explains about how business/organizations are divided, and you will observe that Inbound and Outbound Logistics are primary activities within the broad Supply Chain.
The inputs supplied by colleagues in this thread are great as well.
Logistics is a part of SCM. Logistics focuses on items' management. You can get further insight from https://www.michiganstateuniversityonline.com/resources/supply-chain/is-logistics-the-same-as-supply-chain-management/
The concept of supply chain is broader than the concept of logistics and largely refers to inter-firm collaboration. Many scholars consider successful collaboration as a achievement of benefits which can't be reached in a independent way. Logistics is one of the most important activities here and basically constituting this chain. The attention is focused on physical flow of goods and information flow.
Thank you for your time and contribution Gezahegn Tesfaye Dadi. The link is helpful. Regards.
Thank you for your prompt response and valuable comment Marcin Świtała.
Hello, I suggest you to take the book titled "The large authors in logistics and SCM" by Lavastre, Carbone & Ageron, and particularly the chapter 3 about "Martha Cooper, the first lady in the field of logistics and SCM". She very well explains the main differences between these two concepts : "SCM: more than a new name for logistics" written with D. Lambert and J. Pagh in 1997.
Dr. Bruno Durand,
Thank you for your interesting suggestion. Am sure the book titled "The large authors in logistics and SCM" by Lavastre, Carbone & Ageron will be useful. Am glad to also know that your area of research is purely e-Logistics. I have great interest in e-Logistics and would keep in touch for clarification on some aspect of e-Logistics and supply chain.
Regards,
Modestus.
Hi Modestus, there is are differences between logistics and Supply Chain Management (SCM). First, logistics is a subset of SCM. Secondly, while SCM is defined as the management of the flow of goods and services, involves the movement and storage of raw materials, of work-in-process inventory, and of finished goods from point of origin to point of consumption; logistics on the other hand is defined as the part of SCM that manages the forward and backward movement of goods, services, and related information from the points of origin to consumption in order to meet customer's demands.
There are six (6) rights of logistics and they are:
the right goods
in the right quantity
in the right condition
delivered to the right place
at the right time
for the right cost
I pray my explanations work!
To offer a different way of looking at these, look for Michel Porter Value-added model, who explains about how business/organizations are divided, and you will observe that Inbound and Outbound Logistics are primary activities within the broad Supply Chain.
The inputs supplied by colleagues in this thread are great as well.
Thank you Prof. Hussin Jose Hejase for your time and valuable suggestion. I skimmed through some downloaded articles on Michael Porter's Chain Analysis as you suggested. The focus is on systems and activities (primary and support activities) with customers as the central principle. Primary activities have an immediate effect on production, maintenance, sales and support of products or services to be supplied. The elements of the listed activities include: Inbound logistics, production, outbound logistics, marketing and sales, services.... I will do a deep study later.
Regards,
Modestus
Dear K. A. Gulma,
Thank you very much for your views highlighting the differences between logistics and Supply Chain Management (SCM). Your views are well appreciated.
Regards,
Modestus.
Dear Modestus
I appreciate your fast response to suggestions. I like your attitude. Fast learner indeed.
Michael Porter's Value Chain Analysis is so interesting. Many thanks to Prof. H.J. Hejase. The Inbound and Outbound Logistics are truly primary activities within the broad Supply Chain.
logistics takes care of intra-company integration (within the company); SCM takes care of inter-company management (between companies).
SCM therefore involves suppliers and customers at various levels - such as customer customers - coordinating to rationalize and optimize the flow of materials and information (from raw material to final product consumption).
This type of management proposes to eliminate the redundancies and to reduce the time of the production cycles and the inventories, in order to offer the best services at the lowest costs to its clients.
Logistics seeks to acquire the product or raw material from the right source, at the right time, in the right quantity, in the right place, and for the right customer at the right price.
It relates to the movement of products from one point to another and controls the flow of information about that displacement. It is concerned with the control of inventories and also with the reduction of costs.
Logistics takes direct care of the acquisition of inputs, storage and transportation of the product from the point of origin to the point of arrival; The supply chain is more associated to the strategic and integral vision of the logistics processes.
When practicing Integrated Logistics, we try to unify logistics and supply chain to get better:
planning; inventory management; order processing; handling and storage; information management, transportation and distribution; PPCP (Production Planning, Programming and Control).
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