What is the difference between supply chain management and logistics management?

The concept of supply chain management and logistics management

(1) The concept of supply chain management

The term supply chain management was first proposed by some world-class management consultants in the early 1980s. Since then, with the rapid development of economy and technology, supply chain management has undergone profound changes in theory and practice. Initially, supply chain management was seen as an operational management activity to accelerate the flow of goods and information through supply channels, which optimizes business processes and keeps the activities of partners in the supply chain and the supply chain synchronized. Reduce costs and increase productivity in the supply chain. However, this is only part of the concept of supply chain management. At present, the more mainstream view is based on the perspective of management ideas and method integration. It is considered that supply chain management is the function of planning and controlling the logistics from supply to end users in the supply chain. According to the definition of China's "National Logistics Standard Terminology", supply chain management refers to the use of computer network technology to comprehensively plan the business flow, logistics, information flow, and capital flow in the supply chain, and to plan, organize, coordinate and control.

(2) The concept of logistics management

Logistics management refers to the planning, organization, command, coordination, control and supervision of logistics activities in accordance with the law of the flow of material data entities, the basic principles and scientific methods of application management in the process of social reproduction, so that all logistics activities can be realized. Good coordination and cooperation to reduce logistics costs and improve logistics efficiency and economic efficiency. Modern logistics management is based on system theory, information theory and cybernetics. It has two meanings: narrow sense and broad sense. The narrow sense of logistics management refers to the procurement, transportation, distribution, reserve and other activities of materials. A material circulation activity; generalized logistics management includes the material conversion process in the production process, which is now commonly referred to as supply chain management.

The relationship between supply chain management and logistics management

(1) From the perspective of management objectives

From the point of view of management objectives, modern logistics management refers to the flow of products, services and information from the place of production to the place of sale in order to meet the needs of customers, and the planning and implementation of the work to enable efficient and low-cost storage. And control behavior. Supply chain management, in the process of providing products, services and information, integrates key business processes between end users and original suppliers to add value to customers and all other process participants. It can be seen that logistics management and supply chain management are consistent in the goal of serving customers.

Although the management objectives of the two are consistent, this does not mean that the nature of the work of the two is the same. The nature of supply chain work highlights the various relationships that are handled and coordinated between suppliers, manufacturers, distributors, retailers and end users, while the nature of logistics work focuses on logistics with certain logistics production skills. Those who use labor facilities such as logistics facilities and logistics machinery act on the production activities of logistics objects.

(2) From the perspective of management content

From the perspective of management content, logistics management includes logistics activities and other activities directly related to logistics activities, including all logistics activities from the supply of raw materials to the sales of products. The content involved in supply chain management is much larger. Supply chain management is a model that integrates suppliers, manufacturers, distributors, retailers and end users into a whole through feed-forward information flow and feedback material flow and information flow. Supply chain management includes the management of business flow, information flow, capital flow, and value-added flow, as well as logistics management. It can be seen that logistics management is part of supply chain management.

At the same time, there are a lot of different contents between logistics management and supply chain management. For example, logistics also includes urban logistics, regional logistics, and international logistics, which are obviously not studied in supply chain management. Of course, product management and manufacturing management involved in supply chain research, tracking and control of production integration plans, and capital flow management between enterprises, etc., logistics management is also not a research object. Even if the scope of management is limited to enterprise management, there are significant differences in the content of logistics management and supply chain management. Supply chain management is the production and marketing organization of the enterprise, while logistics management provides the actual logistics service activities for the production and marketing of the enterprise. The second characteristic of logistics services will not change at any time, any occasion, or any state.

(3) From the perspective of management tools

From the perspective of management methods, supply chain management is an information management based on Internet-based supply chain interaction, which is based on e-commerce. Business flow, information flow, and capital flow can be easily realized through online transmission with the support of electronic tools and network communication technologies. And logistics, that is, the spatial displacement of material data, specific transportation, storage, loading and unloading, distribution and other activities can not be directly carried out by means of online transmission. Although modern logistics is inseparable from logistics management information, Internet technology is also used. But the Internet clearly does not constitute a necessary means of logistics management. In other words, logistics can operate equally under non-Internet technical conditions.

The position of logistics management in supply chain management

As an organic network organization, the supply chain enhances efficiency and enhances overall competitiveness under the guidance of a unified strategy. Logistics management scientifically organizes logistics under supply chain management, so that logistics activities can quickly form logistics relations and determine logistics direction among all links in the supply chain, and simultaneously transmit relevant information of logistics relations to all links in the supply chain through network technology. And in the process of logistics implementation, timely coordination and control, to provide real-time information for all aspects of the supply chain, to achieve low-cost, high-efficiency value-added process management of logistics operations. Among them, the scientific nature of logistics planning is the first step of logistics success, and also a key step; the implementation process of logistics is real-time control of logistics operation and real-time adjustment of logistics planning, which is the mastery of the logistics activity process, which is beneficial to All aspects of the supply chain understand the flow of goods and materials, and coordinate the plans of the corresponding departments; timely coordination and control is to analyze and summarize the logistics that has been carried out, summarize the successful experience and seek the reasons for the problems, and provide experience for improving the management of logistics. With reference, it is also a link for third-party logistics companies to conduct business accounting management.

Characteristics of Logistics Management under Supply Chain Management System

First, the speed. Fast logistics through fast transportation and scientific logistics management and event management. In supply chain management, fast logistics is the basic requirement of the supply chain and the basis for ensuring an efficient supply chain.

Second, information sharing. Compared with the traditional vertically integrated logistics model, the flow of logistics information integrated into the supply chain is greatly increased. Demand information and feedback information transmission is not a step-by-step transmission, but a network-based one. Enterprises can quickly grasp the supply and demand information and market information of different links in the supply chain through the Internet, and achieve information sharing and coordination. The increase of shared information and the application of advanced technology enable enterprises at any node in the supply chain to timely grasp the market demand information and the operation of the entire supply chain. The logistics information of each link can be transparently linked with other links. Communicate and share, thus avoiding the distortion of demand information. At the same time, by eliminating the process and time without adding value, the logistics system of the supply chain is further reduced in cost, which provides a basic guarantee for the agility and refined operation of the supply chain.

Third, diversity. In supply chain management, the diversity of logistics is reflected in the diversity of logistics forms and the diversity of logistics items. The diversity of logistics forms mainly refers to the diversity of logistics and transportation methods and pallets.

Fourth, humanity. Logistics is based on the requirements of users, with a variety of products, reliable quality to achieve customer-friendly services. In supply chain management, logistics requires both scientific methods and management, while at the same time adapting to changes in customer needs in real time, reflecting the characteristics of humanized needs.

Reprinted from the network