The relationship and difference between logistics management and supply chain management

The relationship and difference between logistics management and supply chain management

Supply chain management is a kind of management idea produced in the development process of logistics management from internal integration to external integration, there is an indissoluble link between logistics management and logistics management, and logistics management is an important element of supply chain management. Let's take a look at the specific links and differences!

First, the link between logistics management and supply chain management

It is widely believed that supply chain management is with the development of logistics management and gradually get perfect, but the development of logistics management has become an important part of supply chain management?

It is widely believed that supply chain management was proposed and gradually improved with the development of logistics management. There is a very close link between them, which is mainly manifested in the following points:

(a) From the management content

Logistics management is an important part of supply chain management. Due to the status of logistics in the supply chain, determines the logistics management is bound to become an important part of the supply chain management. The ultimate goal of logistics operations is to maximize customer value at the lowest cost, i.e., to deliver a specific product in an accurate and safe manner to a specified customer at a specified time. To achieve the above goals, depends on the guidance of the supply chain thinking; and the implementation of the supply chain depends on the support of the logistics platform, the chain of any kind of commodity movement, are logistics, information flow, capital flow and the realization of the business process, and the logistics of which is difficult to achieve by any virtual means, the chain of smooth, there must be the support of logistics. Therefore, only to strengthen the logistics management, in order to ensure the smooth operation of the supply chain.

(ii) From a system perspective

The logistics system is a subsystem of the supply chain system. The logistics system is the basis for the smooth operation of the supply chain system, without logistics, the value of the products produced in the supply chain can not be realized, the supply chain has lost the value of existence. Meanwhile, supply chain management is the extension and development of logistics management. Supply chain management appears and develops on the basis of logistics management. On the basis of logistics management, the scope of cross-enterprise management is extended to the integrated development of marketing, finance, manufacturing and other functions. Supply chain management elevates logistics management to the strategic level, not only focusing on internal competitive advantage, but also incorporating external competitive advantage into the scope of the extended enterprise, which makes the original distribution channel and enterprise logistics opposition to the enterprise logistics *** birth, in this new logistics management system, the associated enterprises to strengthen the cooperation, effective control of the supply chain on the logistics, capital flow, value flow, information flow, etc., to enhance each Associated enterprises to enhance the competitive advantage.

Second, the difference between logistics management and supply chain management

Traditional logistics management is mainly concerned with the integration of functions within the enterprise, while the supply chain management is to see all the nodes in the supply chain as a whole, emphasizing the interconnectedness of enterprises. Traditional logistics management is a planning mechanism, while supply chain management is a negotiation mechanism, an open system to reduce or eliminate buffer stocks among supply chain members by coordinating the relationship between demand and inventory, and to realize the whole process of automation and systematic management. Supply chain management emphasizes the reliance on strategic management, and most critically, it requires the adoption of integrated ideas and methods, rather than the simple connection of enterprises at each node in the system. Supply chain management is a new management paradigm that emerged only in the 1990s, and with it the concept of an integrated supply chain, which seeks business opportunities by coordinating logistics with other supply chain members. Generally speaking, supply chain management involves both manufacturing and logistics issues; logistics management involves issues in the non-manufacturing areas of the organization. Specifically, the difference between supply chain management and logistics management is mainly manifested in the following two aspects:

(a) from the management of the object and oriented to the goal to see

Logistics management is the object of logistics activities and other activities directly related to logistics activities, its content is not free to expand unprincipled. Supply chain management involves a wider range of content, including business flow, information flow, capital flow, value-added flow management, including logistics management, there is no obvious research boundaries. Logistics is a subset of supply chain management, and the two are not synonymous. Supply chain management integrates many functions other than logistics across the boundaries between enterprises, and its functions go beyond the scope of enterprise logistics. In the oriented goal, the goal of logistics management is to produce the best quality 'logistics services at the lowest cost, this goal is under the overall strategy of the enterprise's logistics management objectives. As for the logistics management under the supply chain management environment, the goal is to realize the synchronous optimization of the internal logistics and interface logistics of the enterprise under the guidance of the supply chain. The goal of supply chain management is supply chain-oriented, to enhance customer value and customer satisfaction, to obtain the overall competitive advantage of the supply chain.

(ii) From the management mode and level

First, logistics management is mainly from the perspective of the enterprise to consider the supply, storage and distribution, no deep understanding of other intra-enterprise operations, between enterprises is only a simple business relationship. And supply chain management between the nodes of the enterprise is a strategic partnership, the requirements of the supply chain of all the nodes of the enterprise's activities in close collaboration with the control, formed a dynamic alliance, can realize the interests of the ? Win-win (Win?Win)? Secondly, logistics management emphasizes the priority of the local performance of an enterprise, independently analyzes and researches the related problems of the enterprise, and does not consider the relationship with the functions of other enterprises. Supply chain management, on the other hand, treats each enterprise as a node in a supply network, and adopts an integrated approach to study related problems with the support of information technology. Finally, logistics management is often oriented to the operational level, while supply chain management is more concerned with strategic issues, focusing on global models, information integration, organizational structure and strategic alliances.

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