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Logistics Vs.

SCM Source 1: 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.

Source 2: Logistics and Supply Chain functions can overlap. Different companies define them in their own ways. Logistics is generally concerned with strategy and coordination of flows between marketing and production (i.e. transportation and distribution). However, it cuts across many functions such as Supply Chain. I believe that Supply Chain tends to focus on purchasing and procurement, but not necessarily so. It can include materials, inventory, and production planning. There is also Demand Management which focuses on forecasting, but is sometimes included in either logistics or supply chain functions. Sorce 3: The following comes from the Council of Logistics Management Definitions (Cut and pasted from their website): The Definition of Logistics Logistics management is that part of the Supply Chain Management process 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 the point of consumption in order to meet customers' requirements. These are the boundaries and relationships of Logistics Management adopted by the Council of Logistics Management: "Logistics Management activities typically include inbound and outbound transportation management, fleet management, warehousing, materials handling, order fulfillment, logistics network design, inventory management of third party logistics services providers. To varying degrees, the logistics function also includes sourcing and procurement, production planning and scheduling, packaging and assembly, and customer service. It is involved in all levels of planning and execution -- strategic, operational and tactical. Logistics Management is an integrating function, which coordinates and optimizes all logistics activities, as well as integrates logistics activities with other functions including marketing, sales manufacturing, finance and information technology." The Definition of Supply Chain Management Supply Chain Management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all Logistics Management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, Supply Chain Management integrates supply and demand management within and across companies. These are the boundaries and relationships of Supply Chain Management adopted by the Council of Logistics Management: "Supply Chain Management is an integrating function with primary responsibility for linking major business functions and business processes within and across companies into a cohesive and high-performing

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