Supply Chain Management is More than Logistics

Logistics is delivering the right thing, to the right place, at the right time. Logistics management is the planning, implementation, and control of the flow and storage of goods, services, and related information between the point of origin and the point of consumption to meet customer's requirements.

Many logistics firms use computer modeling to determine the most cost-effective solution daily. Using data analysis, a logistician will change the delivery parameters within the computer model to improve service and/or reduce costs. However, logisticians are just one part of the team that manages the supply chain.

Supply Chain Management can be defined as the design, planning, execution, control, and monitoring of supply chain activities, to create net value and build a competitive advantage. All supply chain managers are concerned with meeting customer needs.

While logisticians focus on product movement, other supply chain managers are focused on the movement and storage of raw materials, work-in-process inventory, and finished goods. Still, other supply chain managers lead to new product development, procurement, sourcing, and performance measurement.

The organizational role of supply chain management is to synchronize supply with demand. From product development to procurement and sourcing, managing the supply chain is an increasingly complex series of interconnected activities.

The logistics team plays an integral role in the supply chain which moves the necessary materials from point A to point B. Yet, the new product roll-out example above shows there are many different facets of the supply chain that must work together effectively to meet customer demands.

Without logistics, raw materials and finished goods cannot move to the customer. In conclusion, an integrated supply chain is required to provide a strategic advantage, and fully meet customer demands.