Difference Between Logistics and Supply Chain Management

Running head: SUPPLY CHAIN 1
Supply Chain
Name:
Institution

SUPPLY CHAIN 2
Introduction
In some instances, it is observed that the terms SCM and logistics are applied
interchangeably. However, some researchers argue that there does not exist any difference
between the two terms, arguing that SCM is the “new” logistics. According to PLS Logistics
Services, they have compounded this by arguing that what is termed as SCM in the US is
commonly known as logistics management in Europe. This report seeks to determine if there is
any difference between logistics and supply chain management.
As a result of the continuing evolvement in SCM, transportation, purchasing, logistics,
inventory control, and material handling, it has caused many of the functional areas mentioned
above to intersect with each other. This intersection has resulted in a blurred definition for some
of the terms which include supply chain management and logistics. Regardless that these terms
may have some similarities, the concepts are totally different with different definitions. SCM is
an overarching concept that is used to link together several processes with the intention of
achieving a competitive advantage. However, logistics can be defined as the movement, storage,
as well as services’ flow, products, including information from within the supply chain.
What makes it difficult to differentiate between the two terms is because supply chain
management includes some logistics functions. According to anecdotal evidence, the SCM’
scope differs from one corporation to the other. For example, in a recent professional
organizational meeting, a senior logistician at a Fortune 500 organization expressed that at their
company, SC management extends upstream from the production period to the primary vendors
and also involves sub-component and raw materials flow. In this firm, it is evident that the Chief
Operations Officer is responsible for the supply chain management. However, initiatives such as