What is the difference between supply chain and logistics?

Directors and managers who have the authority and obligation to make decisions and operate a company. Management can be as little as one person in a small company or as large as hundreds or thousands of managers in a multinational corporation.

In the contexts of production, manufacturing, or service supply, operations management is primarily concerned with planning, coordinating, and supervising. As a result, it is delivery-oriented, guaranteeing that an organisation efficiently converts inputs to outputs. Materials, equipment, technology, and human resources such as employees or workers could all be considered inputs. Procurement (acquiring goods or services from outside sources), managing relationships with individuals involved in processes, and enhancing a company’s sustainability in terms of resource consumption are examples of the types of duties or specialised jobs this involves.

It’s vital to understand that, while the terms aren’t interchangeable, they do complement one another. One process can’t exist without the other. Here are some major distinctions between the two terms that will assist you avoid conflating the two.

  • Supply chain management connects major business operations within and across organisations to create a high-performance business model that generates competitive advantage.
  • The transportation, storage, and flow of commodities, services, and information within and beyond an organization is referred to as logistics.
  • The primary goal of supply chain is to gain a competitive edge, whereas the primary goal of logistics is to meet consumer needs.
  • Logistics is a term that has been around for a long time, originating in the military, although supply chain management is a newer one. Within the supply chain, logistics is an activity.

Supply chain management and logistics are two crucial phrases that can assist answer the issue of what operations management is more clearly. In both sectors, operations management has a strong base. Understanding worldwide trends in supply chain management, for example, is often necessary in order to meet client demand. In an era where resources are often in short supply and consumer expectations have risen, the careful and deliberate use of resources, as well as cost-effectiveness, has become increasingly vital in logistics.