Update: 19/09/2022


Supply Chain Management (SCM) or Logistics are two indispensable concepts in operating the economic cycle.

SCM and logistics help manage the network connecting parties involved in providing products/goods or services to consumers. Learn more about these two key areas with Meksmart in the following content.

Overview of supply chain management and logistics industry

Supply chain and logistics management is an industry that helps research, develop, and manage transportation services in production and business operations.

Thereby, this industry helps to outline the whole picture of the business and operation apparatus of the enterprise.

Accordingly, management can easily plan strategies to promote efficient production and smooth flow of products/goods from the place of production to the customer.

The main goal of SCM and logistics is to bring goods and services to consumers at the right time, place, quantity, quality, and cost.

It should be noted that SCM and logistics are two different concepts. To avoid confusion, you can understand that SCM will include logistics activities.

In fact, there are three main flows in the supply chain:

  • Commodity line
  • Information line
  • Cash flow

Accordingly, the logistics industry will have to ensure that the flow of goods takes place at the right time and in the right place.

For more details, learn about the following logistics definition.

What is the logistics industry?

Logistics is concerned with the procurement, production, transportation and distribution of products or materials.

Logistics industry managers have the following tasks:

  • Create a plan
  • Deploy and control the efficiency of both forward & reverse logistics.
  • Inventory management
  • Linking information between stakeholders (production and consumption) to promptly respond to market needs

The difference between logistics and supply chain


Above is some information about supply chain management and logistics industry. In short, supply chain management is the management of the parties involved in a product supply chain from importing raw materials to distributing to consumers.

Meanwhile, logistics deals with the movement of goods in the supply chain. Since this industry involves so many stakeholders, the amount of work is also substantial.

Manual methods show weakness against technological solutions. Traditional process consumes quite a lot of time and manpower for the same task.

To increase competitiveness in the 4.0 era, businesses are gradually transforming digitally to use software and mobile applications.

Cloud computing technology (Cloud Computing) or big data (Big Data) contributes significantly to the success of these digital solutions.

Admin Meksmart