The terms Logistics and Supply Chain Management are used interchangeably these days, but there is a subtle difference that exists between the two. Supply Chain Management takes into account every small process necessary for the production and delivery of the product. University of Tennessee. It needs efficient management to make the logistics management successful where planning, coordination, and control occupy crucial role. LO4.1 Explain the role of logistics in supply chain management in system in your organization. A procurement supply chain person is directly responsible for the purchasing or procurement of any product (i.e. Technology is supplementing these changes with tools like blockchain and artificial intelligence on the rise. Terry L. Esper: (Ph.D. University of Arkansas) is an Assistant Professor of Logistics in the Department of Marketing and Logistics at the University of Tennessee. Now is the time to make decisions about new strategies and technologies â before your competition pulls ahead. Business terms are often defined over time, by the common use or application of the term. Global market forces in supply chain management are responding. Key Differences between Logistics and Supply Chain Management. Answer #2 Logistics management involves a number of activities including transportation, inventory and ware housing. âLogisticsâ has a military origin, and used to be associated with the movement of troops and their supplies in the battlefield. Relationship between supply logistics and supply chain management with technology Supply Chain Management Technology is changing just about every industry today, supply chain and transportation included. There exist a significant relationship between logistical management and supply chain management. Logistics is one activity within Supply Chain Management. In addition, the common usage of each term in industry varies. Understanding the Relationship between Human Resource Management (HRM) on Supply Chain Management (SCM) While supply chains have been playing a crucial role in several industries for many years, it is only in the past few years that supply chain management (SCM) has been treated as a separate strategic branch which can be improved to benefit businesses. Examines the historical definitions of both terms, looks at current practitioner views of the terms, and proposes a hierarchy for the relationship between logistics and supply chain management. Successful management of supply chain increases the value of the organization. Although many people think that they are different departments with each entitled to handle its activities, the logistical department is a section of the supply chain management that handles specific tasks. There's a difference, but there's also a relationship between supply chain and logistics. Relation Between Logistics and Supply Chain Management A supply chain is a distribution network that performs the functions like procurement of raw materials from the suppliers and these raw materials are converted in to the final products at the production sites. A logistics supply chain person is focused on the logistical cost and efficiencies within the supply chain of an organization. Economic and industry fundamentals are changing, demand is rising, and customer expectations are shifting. Logistics and supply chain management are the two important approaches to surmount the business activities. The organizations are still locate that poignant goods and services all the way through of the global supply chains is expensive time overwhelming. raw materials, components in manufacturing), services (logistics or otherwise). Terry's research interests include supply chain collaboration, supply chain learning and relationship management.