The history of Logistics and Supply Chain management

June 4, 2015 Ken Klaver

 
 

What is the difference between Logistics and Supply Chain Management? Many people use these both terms interchangeably but what is the correct way to use them?

The most confusion exists around the difference between logistics and supply chain management. 'Lummus et al 2001' made a clear distinction between both terms in the article named "The relationship of logistics to supply chain management: developing a common industry definition" that:

"The logistics involves planning, implementing and controlling efficient, effective flow and storage of goods and services from the beginning point of external origin to the company and from the company to the point of consumption for the purpose of conforming to customer requirements. Logistics is generally viewed as within one company, although it manages flow between company and its suppliers and customers. Supply chain management includes logistics flows, the customer order management and production processes and information flows necessary to monitor all activities at the supply chain nodes."

Logistics and SCM is the crossroads of diverse subjects, covering various branches of business, management and engineering. The below infographic will show how Logistics and SCM evolves and its relationship with other disciplines,

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