Difference Between Logistics And Supply Chain Pdf

difference between logistics and supply chain pdf

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Daniel Fritsch. Even in ancient times, logistics was a science in itself. For example, the Romans maintained their own transport systems and troops specifically for supplying their legions abroad.

Differences Between Logistics and Supply Chain

Logistics is generally the detailed organization and implementation of a complex operation. In a general business sense, logistics is the management of the flow of things between the point of origin and the point of consumption to meet the requirements of customers or corporations.

The resources managed in logistics may include tangible goods such as materials, equipment, and supplies, as well as food and other consumable items. In military science, logistics is concerned with maintaining army supply lines while disrupting those of the enemy, since an armed force without resources and transportation is defenseless.

Military logistics was already practiced in the ancient world and as the modern military has a significant need for logistics solutions, advanced implementations have been developed. In military logistics, logistics officers manage how and when to move resources to the places they are needed. Logistics management is the part of supply chain management and supply chain engineering that plans, implements, and controls the efficient, effective forward, and reverse flow and storage of goods, services, and related information between the point of origin and point of consumption to meet customer's requirements.

The complexity of logistics can be modeled, analyzed, visualized, and optimized by dedicated simulation software. The minimization of the use of resources is a common motivation in all logistics fields. A professional working in the field of logistics management is called a logistician. The term appears in the edition, then titled Analytic Table Tableau Analytique , [1] and Jomini explains that it is derived from French : logis , lit.

Formerly the officers of the general staff were named: marshall of lodgings, major-general of lodgings; from there came the term of logistics [ logistique ], which we employ to designate those who are in charge of the functioning of an army. The term is credited to Jomini, and the term and its etymology criticized by Georges de Chambray in , writing: [2].

Logistic : This word appears to me to be completely new, as I have not yet seen it anywhere in military literature. Some sources give this instead as the source of logistics , [3] either ignorant of Jomini's statement that it was derived from logis , or dubious and instead believing it was in fact of Greek origin, or influenced by the existing term of Greek origin. Jomini originally defined logistics as: [1].

The Oxford English Dictionary defines logistics as "the branch of military science relating to procuring, maintaining and transporting material, personnel and facilities".

However, the New Oxford American Dictionary defines logistics as "the detailed coordination of a complex operation involving many people, facilities, or supplies", and the Oxford Dictionary on-line defines it as "the detailed organization and implementation of a complex operation". According to the Council of Supply Chain Management Professionals previously the Council of Logistics Management , [5] logistics is the process of planning, implementing and controlling procedures for the efficient and effective transportation and storage of goods including services and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements and includes inbound, outbound, internal and external movements.

Academics and practitioners traditionally refer to the terms operations or production management when referring to physical transformations taking place in a single business location factory, restaurant or even bank clerking and reserve the term logistics for activities related to distribution, that is, moving products on the territory.

Managing a distribution center is seen, therefore, as pertaining to the realm of logistics since, while in theory, the products made by a factory are ready for consumption they still need to be moved along the distribution network according to some logic, and the distribution center aggregates and processes orders coming from different areas of the territory.

That being said, from a modeling perspective, there are similarities between operations management and logistics, and companies sometimes use hybrid professionals, with for example a "Director of Operations" or a "Logistics Officer" working on similar problems. Furthermore, the term supply chain management originally refers to, among other issues, having an integrated vision of both production and logistics from point of origin to point of production.

Inbound logistics is one of the primary processes of logistics concentrating on purchasing and arranging the inbound movement of materials, parts, or unfinished inventory from suppliers to manufacturing or assembly plants, warehouses, or retail stores.

Outbound logistics is the process related to the storage and movement of the final product and the related information flows from the end of the production line to the end-user. Given the services performed by logisticians, the main fields of logistics can be broken down as follows:. Procurement logistics consists of activities such as market research , requirements planning, make-or-buy decisions, supplier management, ordering, and order controlling.

The targets in procurement logistics might be contradictory: maximizing efficiency by concentrating on core competences, outsourcing while maintaining the autonomy of the company, or minimizing procurement costs while maximizing security within the supply process.

Advance Logistics consists of the activities required to set up or establish a plan for logistics activities to occur. Global Logistics [8] is technically the process of managing the 'flow' of goods through what is called a supply chain, from its place of production, to other parts of the world. This often requires an intermodal transport system, transport via ocean, air, rail, and truck.

This is possibly one of the more time-consuming and complicated forms of logistics. Distribution logistics has, as main tasks, the delivery of the finished products to the customer. It consists of order processing, warehousing, and transportation.

Distribution logistics is necessary because the time, place, and quantity of production differ with the time, place, and quantity of consumption. Disposal logistics has as its main function to reduce logistics cost s and enhance service s related to the disposal of waste produced during the operation of a business. Reverse logistics denotes all those operations related to the reuse of products and materials.

The reverse logistics process includes the management and the sale of surpluses, as well as products being returned to vendors from buyers. Reverse logistics stands for all operations related to the reuse of products and materials.

It is "the process of planning, implementing, and controlling the efficient, cost-effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal.

More precisely, reverse logistics is the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal. The opposite of reverse logistics is forward logistics. Green Logistics describes all attempts to measure and minimize the ecological impact of logistics activities.

This includes all activities of the forward and reverse flows. This can be achieved through intermodal freight transport , path optimization, vehicle saturation and city logistics. RAM Logistics see also Logistic engineering combines both business logistics and military logistics since it is concerned with highly complicated technological systems for which Reliability , Availability and Maintainability are essential, ex: weapon systems and military supercomputers.

Asset Control Logistics : companies in the retail channels, both organized retailers and suppliers, often deploy assets required for the display, preservation, promotion of their products. Emergency logistics or Humanitarian Logistics is a term used by the logistics, supply chain, and manufacturing industries to denote specific time-critical modes of transport used to move goods or objects rapidly in the event of an emergency.

Humanitarian logistics involves governments, the military, aid agencies , donors, non-governmental organizations and emergency logistics services are typically sourced from a specialist provider. The term production logistics describes logistic processes within a value-adding system ex: factory or a mine.

Production logistics aims to ensure that each machine and workstation receives the right product in the right quantity and quality at the right time. The concern is with production, testing, transportation, storage, and supply. Production logistics can operate in existing as well as new plants: since manufacturing in an existing plant is a constantly changing process, machines are exchanged and new ones added, which gives the opportunity to improve the production logistics system accordingly.

Production logistics becomes more important with decreasing batch sizes. In many industries e. Track and tracing , which is an essential part of production logistics due to product safety and reliability issues, is also gaining importance, especially in the automotive and medical industries. Construction Logistics has been employed by civilizations for thousands of years. As the various human civilizations tried to build the best possible works of construction for living and protection.

Now construction logistics has emerged as a vital part of construction. In the past few years, construction logistics has emerged as a different field of knowledge and study within the subject of supply chain management and logistics. In military science, maintaining one's supply lines while disrupting those of the enemy is a crucial—some would say the most crucial—element of military strategy , since an armed force without resources and transportation is defenseless.

The historical leaders Hannibal , Alexander the Great , and the Duke of Wellington are considered to have been logistical geniuses: Alexander's expedition benefited considerably from his meticulous attention to the provisioning of his army, [13] Hannibal is credited to have "taught logistics" to the Romans during the Punic Wars [14] and the success of the Anglo-Portuguese army in the Peninsula War was due to the effectiveness of Wellington's supply system, despite the numerical disadvantage.

Militaries have a significant need for logistics solutions and so have developed advanced implementations. Integrated Logistics Support ILS is a discipline used in military industries to ensure an easily supportable system with a robust customer service logistic concept at the lowest cost and in line with often high reliability, availability, maintainability, and other requirements, as defined for the project.

In military logistics , Logistics Officers manage how and when to move resources to the places they are needed. Supply chain management in military logistics often deals with a number of variables in predicting cost, deterioration, consumption , and future demand.

The United States Armed Forces ' categorical supply classification was developed in such a way that categories of supply with similar consumption variables are grouped together for planning purposes.

For instance, peacetime consumption of ammunition and fuel will be considerably lower than wartime consumption of these items, whereas other classes of supply such as subsistence and clothing have a relatively consistent consumption rate regardless of war or peace.

Some classes of supply have a linear demand relationship: as more troops are added, more supply items are needed; or as more equipment is used, more fuel and ammunition are consumed. Other classes of supply must consider a third variable besides usage and quantity: time.

As equipment ages, more and more repair parts are needed over time, even when usage and quantity stay consistent. By recording and analyzing these trends over time and applying them to future scenarios, the US Armed Forces can accurately supply troops with the items necessary at the precise moment they are needed.

The lack thereof can lead to a clunky, slow, and ill-equipped force with too much or too little supply. One definition of business logistics speaks of "having the right item in the right quantity at the right time at the right place for the right price in the right condition to the right customer".

The term "business logistics" has evolved since the s [19] due to the increasing complexity of supplying businesses with materials and shipping out products in an increasingly globalized supply chain, leading to a call for professionals called "supply chain logisticians".

In business, logistics may have either an internal focus inbound logistics or an external focus outbound logistics , covering the flow and storage of materials from point of origin to point of consumption see supply-chain management.

The main functions of a qualified logistician include inventory management , purchasing , transportation, warehousing , consultation, and the organizing and planning of these activities. Logisticians combine professional knowledge of each of these functions to coordinate resources in an organization.

There are two fundamentally different forms of logistics: one optimizes a steady flow of material through a network of transport links and storage nodes, while the other coordinates a sequence of resources to carry out some project e. There may be some intermediaries operating for representative matters between nodes such as sales agents or brokers. A logistic family is a set of products that share a common characteristic: weight and volumetric characteristics, physical storing needs temperature, radiation, The following metrics may be used by the company to organize its products in different families: [20].

Other metrics may present themselves in both physical or monetary form, such as the standard Inventory turnover. Unit loads are combinations of individual items which are moved by handling systems, usually employing a pallet of normed dimensions. Handling systems include: trans-pallet handlers, counterweight handler, retractable mast handler, bilateral handlers, trilateral handlers, AGV and other handlers. Storage systems include: pile stocking, cell racks either static or movable , cantilever racks and gravity racks.

Order processing is a sequential process involving: processing withdrawal list, picking selective removal of items from loading units , sorting assembling items based on the destination , package formation weighting, labeling, and packing , order consolidation gathering packages into loading units for transportation, control and bill of lading. Picking can be both manual or automated. Manual picking can be both man to goods, i.

Automatic picking is done either with dispensers or depalletizing robots. Sorting can be done manually through carts or conveyor belts, or automatically through sorters. Cargo, i.

Unit loads are usually assembled into higher standardized units such as: ISO containers , swap bodies or semi-trailers. Especially for very long distances, product transportation will likely benefit from using different transportation means: multimodal transport , intermodal transport no handling and combined transport minimal road transport.

When moving cargo, typical constraints are maximum weight and volume. Operators involved in transportation include: all train, road vehicles, boats, airplanes companies, couriers , freight forwarders and multi-modal transport operators.

Merchandise being transported internationally is usually subject to the Incoterms standards issued by the International Chamber of Commerce. Similarly to production systems, logistic systems need to be properly configured and managed. Actually a number of methodologies have been directly borrowed from operations management such as using Economic Order Quantity models for managing inventory in the nodes of the network.

The Differences Between the Supply Chain and Logistics

Today, many manufacturers treat the words as one in the same, and often use them interchangeably. Complicating matters further, what is considered supply chain management SCM in the U. However, while the words share commonalities, they are very different concepts meaning very different things. A simple Google search confirms that a lot of confusion exists over the differences between supply chain management and logistics. In fact, Inbound Logistics went so far as to ask their readers if SCM and logistics were one in the same. Needless to say, the responses were all over the map. If the two terms are different, how did they become so intertwined in the minds of so many?

Tags: Logistics , Supply Chain. They both provide direction regarding how field assets must be situated and positioned. But the coach provides the overall game plan, and the QB executes the moves, adapting on the fly as needed. If managing the supply chain is like fetching a hungry baby a bottle, then logistics is the thankless trek up and down the stairs in the middle of the night. Logistics is the connection from one node or point to another; supply chain is a series of sequential nodes or points connected to one another. Supply chain comprises all aspects of a product cycle from origin to end user, for example from farm to fork. Logistics relates to one component of supply chain, addressing efficient product movement, such as from manufacturer to retail store.

Logistics is generally the detailed organization and implementation of a complex operation. In a general business sense, logistics is the management of the flow of things between the point of origin and the point of consumption to meet the requirements of customers or corporations. The resources managed in logistics may include tangible goods such as materials, equipment, and supplies, as well as food and other consumable items. In military science, logistics is concerned with maintaining army supply lines while disrupting those of the enemy, since an armed force without resources and transportation is defenseless. Military logistics was already practiced in the ancient world and as the modern military has a significant need for logistics solutions, advanced implementations have been developed. In military logistics, logistics officers manage how and when to move resources to the places they are needed. Logistics management is the part of supply chain management and supply chain engineering that plans, implements, and controls the efficient, effective forward, and reverse flow and storage of goods, services, and related information between the point of origin and point of consumption to meet customer's requirements.


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What is the Difference Between Logistics and Supply Chain?

Logistics and supply chain management are some terms that are prevalent and have been used in the modern world of business and other areas that involve several activities, which include military operations among others. Apparently, it has become difficult for people to indicate whether one is practicing logistical management or supply chain management leading some professionals even to use the two terms interchangeably. However, there exist a significant number of differences between logistics and supply chain management that are important for one to understand. Logistics is a term used to describe the process of handling goods within a specific department while at the same time keeping an inventory document of the status and whereabouts of different inventories.

What’s the Difference Between Logistics and Distribution?

Differences Between Logistics and Supply Chain Management

Global supply chains are essential to worldwide commerce, and the underlying logistics involved in sending, receiving, moving, and storing goods is central to that success. Despite some individuals and organizations using the words interchangeably, there are many important differences between the functions, capabilities, inputs, and outputs of each. The quickest distinction to make is that supply chains are responsible for the overall sourcing, processing, and delivery of goods to the end customer, while logistics specifically focuses on moving and storing goods between different supply chain organizations. The most important distinction is that logistics is a distinct part of the supply chain and is essential to good supply chain performance. A supply chain may have many different types of logistics and logistics companies within it, all dedicated to helping the supply chain run smoothly. However, each logistics operation is only responsible for a unique and self-contained part of the supply chain. Good logistics management is all about efficient transport and storage.

There has been consensus that logistics as well as supply chain management is a vital research field, yet with few literature reviews on this topic. This paper sets out to propose some hot issues in the current research, through a review of related literature from the perspective of operations management. In addition, we generate some insights and future research directions in this field.

The lines separating supply chain management from logistics can appear blurred, and the two concepts are often referred to interchangeably. Yet although a symbiotic relationship exists, each possesses distinctly different functions and purposes, comprised of specialized tasks and responsibilities. Think of a supply chain as a network —of manufacturers, suppliers, wholesalers, retailers, etc. Simply put: Logistics is a fraction of supply chain management ; the latter, an umbrella term used to describe an entire business philosophy, encompassing all internal and external supply chain processes, including logistics. Still scratching your head? You are not alone.

Logistics is a Subsection of the Supply Chain

Как ты легко можешь себе представить, я был шокирован, впервые наткнувшись на его письмо Северной Дакоте о не поддающемся взлому коде, именуемом Цифровая крепость. Я полагал, что это невозможно. Но всякий раз, когда я перехватывал очередное сообщение, Танкадо был все более и более убедительным. Когда я прочитал, что он использовал линейную мутацию для создания переломного ключа, я понял, что он далеко ушел от нас. Он использовал подход, который никому из нас не приходил в голову. - А зачем это нам? - спросила Сьюзан.

Первый - с личного терминала коммандера, запертого в его кабинете, и он, конечно, исключался. Второй - с помощью ручного выключателя, расположенного в одном из ярусов под помещением шифровалки. Чатрукьян тяжело сглотнул. Он терпеть не мог эти ярусы.

Что он делает здесь, в Испании, зачем спорит с этим психованным подростком. Беккер резким движением взял парня под мышки, приподнял и с силой посадил на столик. - Слушай, сопливый мозгляк.

2 COMMENTS

Unnenhiawich

REPLY

is the implementation of the procurement strategy.

Archaimbau R.

REPLY

Logistics management is a small portion of Supply Chain Management which combines the flow of goods, services, information and capital right from raw material to its final consumer.

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