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The term logistics refers to the activities involved in moving goods from the point of origin to the point of consumption. It involves things like transportation, packaging, and warehousing. And logistics management is a part of the supply chain process that plans the efficient flow and storage of goods from one place to another to meet customer requirements.

On the other hand, Supply chain is a network of manufacturers, suppliers, wholesalers, retailers, etc. to produce and distribute products to the final customer. And supply chain management is the management of the flow of goods and services, including the process of turning raw materials to the final products. It is a concept that links together multiple processes to achieve competitive advantages.



Supply chain management is a broader term, and logistics management is a small portion of the supply chain management. Now let’s get to the point and understand the difference between these two terms:-


Definition of Logistics Management


Logistics Management process includes the movement of goods and services, starts from sourcing raw material and ends when the final product reaches the customers. The main objective is to provide the right product, at the right time, in the right place to the customer. 


Logistics activities are divided into two categories:- 

  1. Inbound logistics 
  2. Outbound logistics

Definition of Supply Chain Management


Supply chain management includes interrelated activities related to the transformation of raw materials and the movement of final goods to the end consumers. The efforts of multiple organizations like manufacturers, suppliers, and retailers help in making this chain of activities successful. 


Key Differences between Logistics Management and Supply Chain Management


  1. Aim of Logistics is to provide customer satisfaction, and the Supply chain aims to gain competitive advantage.
  2. Logistics involve only one organization, while supply chain management involves several organizations.
  3. Supply Chain Management is a new concept as compared to logistics.
  4. The integration of supply chain activities is known as supply chain management, while the flow and storage of goods from one point to another define logistics.
  5. Logistics is only a part of Supply Chain Management.


Both terms are inseparable. They are opposite but complement each other. 


Future Of Logistics And Supply Chain Management


Demand and supply factors keep on changing, with the evolution of the global marketplace. For example, consumer demand changes with the change in trends. So smart companies need to be flexible and adapt to the changes to avoid future supply chain problems in the future.

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