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Difference Between Logistics And Supply Chain Management

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The label “Made in China” fills our aisles with products sporting the term from appliances to textiles to children’s toys. Americans prefer to support their country, with 78% stating they would rather buy domestically produced products over their international counterparts (Consumer Reports Magazine, 2013). Despite the strong support of made-in-America products, international production and trading dominates because of its lower costs for retailers and wholesalers who import these goods. This move to outsourcing production has forced those in business to understand the science of logistics and supply chain management more than ever before. With the international trade growth rate growing at about 5.51% per year, it’s crucial that business programs like the one taught at Northern Arizona University include courses on how supply chain management and logistics affect organizations (David, 2013).
Firstly, it’s important to understand the difference and relationship between logistics and supply chain management. Logistics, as defined by the textbook, “plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods and services to meet customers’ requirements” (David, 2013, p. 47). Logistics is focused on the physical procurement and delivery of products and services. They ensure that the items reach the customer safely, securely, on-time, and without delays for the lowest possible cost.
Supply chain management is an extension of logistics,

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