Reliant Logistics Institute

Difference between Logistics and Supply Chain Management


Logistics Management which is a small part of Supply Chain Management and it manages the administration of products in an effective way. When we discuss Supply Chain Management, it is a more extensive term which alludes to the association, ideal from the providers to a definitive purchaser. Individuals are constantly confounded between these two ideas.

It has been seen that there has been an extreme change in the way in which business is led numerous years prior and now. Because of the change in the innovation, you can see every one of the regions of business has been produced. Store network Management additionally developed as a change over Logistics Management, from past years. Presently getting to the meaningful part, we should begin understanding the distinction amongst Logistics and Supply Chain Management.

Comparison Chart





The way toward coordinating the development and upkeep of products in and out the organization is Logistics.

The coordination and management of the supply chain activities are known as Supply Chain Management.


Customer Satisfaction

Competitive Advantage


The concept of Logistics has been evolved earlier.

Supply Chain Management is a modern concept.

How many organizations are involved?



One in another

Logistics Management is a part of Supply Chain Management.

Supply Chain Management is the modern version of Logistics Management.


Definition of Logistics Management

The administration procedure which coordinates the development of products, management, data and capital, appropriate from the sourcing of raw material, till it reaches its end shopper is known as Logistics Management. The target behind this procedure is to furnish the correct item with the correct quality at the perfect time in the ideal place at the correct cost to a definitive client. The strategic exercises are separated into two general classifications they are:

  • Inbound Logistics: The activities which are concerned with procurement of material, handling, storage and transportation
  • Outbound Logistics: The activities which are concerned with the collection, maintenance and distribution or delivery to the final consumer.

Apart from these, different activities included are warehousing, protective packing of products, order fulfillment, stock control, keeping up balance amongst demand and supply, stock management. This will bring about funds in cost and time, fantastic items and so on.

Definition of Supply Chain Management

Supply Chain Management (SCM) is a system of related exercises of change and development from crude material to the completed merchandise till it scopes to the end customer. It is the aftereffect of the undertakings of various associations that supported in making this chain of activities productive.

These organizations may incorporate the organizations with whom the association is as of now working like accomplices or providers, makers, wholesalers, retailers and purchasers. The exercises may incorporate coordination, sourcing, acquisition, generation, testing, co ordinations, client administrations, execution estimation, and so on.

Supply Chain Management has a multi-dimensional approach which deals with the flow of raw materials and work in progress (semi finished goods) within the organization and the final result outside the organization till it achieves the hands of the last buyer with an entire accentuation on the client prerequisite.

Key Differences between Logistics and Supply Chain Management

The below mentioned points are the major differences between logistics and supply chain management:

  1. The flow and storage of goods inside and outside the firm is known as Logistics. The movement and integration of supply chain activities is known as Supply Chain Management.
  2. The major aim of Logistics is complete customer satisfaction whereas behind Supply chain Management it is to get substantial competitive advantage.
  3. There is only one organization involved in Logistics while a number of organizations are involved in Supply Chain Management.
  4. Supply Chain Management is a modern concept as compared to Logistics.
  5. Logistics is only an activity of Supply Chain Management.


Logistics is an extremely old term, initially utilized as a part of the military, for the upkeep, stockpiling and transportation of armed force people and merchandise. These days, this term is utilized as a part of numerous circles, not particularly in military after the development of the idea of Supply Chain Management. It has likewise been said that SCM is an expansion over  and also SCM includes logistics. Both are indistinguishable, thus they don’t contradict yet supplement each other. SCM encourages Logistics to be in contact with the transportation, stockpiling and appropriation group.


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