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Diff SCM and Logistic

what is the differance between Logistics & SCM ???? in maining

i want a core differance

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  • author's profile photo Former Member
    Former Member
    Posted on Jan 13, 2009 at 09:29 PM

    It is same but in todays world the logistics calls as SCM- Supply change management

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  • author's profile photo Former Member
    Former Member
    Posted on Jan 14, 2009 at 11:38 AM

    Hi Ahmed,

    I think that today most companies donu2019t differentiate between logistic and supply chain in their daily activities.

    So, if you want to differentiate between SCM and logistic you, have to check in the literature.

    If I try to summarize same articles that I have read about this issue I would say:

    Logistics activities are just components within the Supply Chain management.

    In fact, If we consider the Taylor Supply Chain Matrix, as a definition for the Supply Chain Management, which classify the enterprise activities into 3 levels of management and 3 levels of business process and lists in this matrix 11 components :

    (Product design, Supply Chain Design, Materials Planning, Distribution Planning, Forecasting, Purchasing, Receiving, Production Control, Sales, Shipping).

    We can select from these 11 components only 4 components that belong to logistic activities

    Materials Planning, Receiving, Distribution Planning, Shipping.

    However the others components:

    Product design: u201Cproduct design and production line layout definition, workstation sizing and definition, production line implementation,....u201D

    Supply Chain design: multi-suppliers, outsourcing, how many plants, where we hold plant, how many warehouse, the maximum capacitor of the production line

    Forecasting: How many product I will sell, potential increase of raw material in the future,...

    Production Control: How many persons I need, How many product I can produce per period, If I reach the optimum production level.

    Sales: ....

    All these components I think arenu2019t linked to logistic, they are news concepts developed by the Supply Chain Management Approach

    regards

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  • author's profile photo Former Member
    Former Member
    Posted on Jan 14, 2009 at 11:51 AM

    Dear,

    Logistics Management:

    For some companies, a significant proportion of purchases are exports/imports.

    For others, the shipment of goods by a third-party carrier is a frequently

    occurring expense. In these cases, transportation costs can have a large

    financial impact since they can represent a high percentage of the total

    delivered cost.

    So by using Logistics management module, through system we can track the individual costs

    associated with the transportation of goods into and out of company

    locations. You can build these costs into the standard cost for items or

    track them as an expense in the general ledger.

    Supply chain management is the movement of goods and information from suppliers and multiple company sites through the manufacturing process.

    Regards,

    Prashanth Pai

    "Award, if Helpful"

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  • author's profile photo Former Member
    Former Member
    Posted on Jan 14, 2009 at 01:52 PM

    Logistics includes physical distribution, warehousing, freight transportation (inbound and outbound from manufacturing plants and in some industries customer service (sales order processing, inventory planning and production planning.

    Supply chain (for a manufacturer)includes the logistics business functions above, and also includes purchasing, sourcing, procurement, buying, manufacturing operations,production scheduling and inventory control and materials management, facilities location planning, the information technology to coordinate between suppliers, the company, and customers (wholesalers and retailers and end users.

    In a retail and wholesale company, the manufacturing company would be the suppliers or sometimes the wholesalers for a retail company.

    Each industry the supply chain is defined slightly different.

    Brgds,

    Ashok

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