Supply Chain Management Vs Logistics Management | What's the difference | What's the Job Roles

Supply Chain Management Vs Logistics Management | What's the Difference | What's the Job Roles

Introduction

Over the past 50 to 60 years, traditional shipping companies have primarily focused on the transportation aspect of the logistics industry. These companies specialize in moving goods from one place to another and storing them strategically. Modern logistics, however, encompasses more diverse and complex operations. This article delves into the nuances of supply chain management (SCM) versus logistics management, the roles within these fields, and the impact on salaries and job functions.

Traditional Roles in Shipping

Traditional shipping companies have long operated as pure shipping entities. Their primary responsibilities included ensuring goods were transported safely:

• From origin to destination
• Through trucking and storage
• Handling checkpoint delays and lead times

Typically, lead times for foreign manufacturing can vary from three weeks to six months, depending on the type of goods. Effective logistics involves checking the cost, quality, and quantity of products during transit.

Modern Logistics

Modern logistics extends beyond mere transportation. It covers areas such as:

• Movement and Storage: Where to store goods and how to move them effectively.
• Safety in Transit: Ensuring goods are carried safely.
• Destination Readiness: Preparing for destination handling.

Supply Chain Management (SCM)

Supply chain management goes a step further. It integrates broader aspects of goods movement, involving:

• Quality Checkpoints: Monitoring quality and cost throughout the supply chain.
• Shelf Life Management: Ensuring products, especially in supermarkets, maintain their shelf life.
• Workforce Management: Involved in staffing, from truck drivers to crane operators.

SCM focuses intensely on ensuring that the whole supply chain operates smoothly, from raw materials to final delivery.

Differences in Job Roles & Focus Areas

• Logistics Companies: Often don't invest much in supply chain management. Their focus remains on the shipping and storage aspects.
• Crane Operations at Ports: For both supply chain management and logistics, efficient crane operation is crucial for loading and unloading containers.
• Negotiations & Office Work: Logistics management also entails a significant amount of office work, such as shipping negotiations.

Major Companies Focusing on SCM

Companies like Amazon and Walmart prioritize robust supply chain management systems. They dedicate extensive resources to perfecting their logistics processes. Unlike traditional logistics firms, these companies incorporate SCM practices into their core business strategies for enhanced efficiency:

• Supply Chain Emphasis: Advanced SCM processes.
• Logistics Specialization: A significant component but part of the broader SCM.

Conclusion

Depending on the company and your role, job functions and salaries in the field of logistics can vary. A deeper dive into respective salaries and job roles would be warranted for further clarification.

Keywords

• Traditional Shipping Companies
• Modern Logistics
• Supply Chain Management (SCM)
• Quality Checkpoints
• Crane Operations
• Lead Times
• Workforce Management
• Amazon
• Walmart
• Job Roles
• Salary

FAQ

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

Logistics management primarily focuses on the movement and storage of goods, while supply chain management encompasses a more comprehensive view, including quality checkpoints, cost monitoring, and workforce management.

2. What roles are involved in modern logistics companies?

Modern logistics companies involve roles surrounding the safe movement and storage of goods, ensuring readiness at the destination, and managing the workforce involved in these tasks.

3. How do supply chain management roles differ from traditional logistics?

Supply chain management roles often involve broader responsibilities, such as integrating various nodes of the supply chain, managing quality and cost, and focusing on overall efficiency from raw materials to final delivery.

4. Why do companies like Amazon and Walmart focus on supply chain management?

These companies prioritize SCM to enhance efficiency, integrate advanced processes, manage logistics specialization, and address the dynamic needs of their business operations.

5. How can I find more information on salary and job roles in logistics and supply chain management?

Detailed insights into salaries and job roles can be found in dedicated industry reports, company career pages, and professional networks focused on logistics and supply chain management.