Discuss the view that Supply Chain Management and Logistics are synonymous.

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M S Smyth

Discuss the view that Supply Chain Management and Logistics are synonymous.

There are many different and varied definitions for both Supply Chain Management (SCM) and Logistics.  Each definition depends greatly upon the perspective of the individual who is using the term.  Only by identifying the parameters in which these expressions are used can it be determined whether the two are synonymous or not. This essay aims to describe the range of definitions for both subjects and then ascertain to what extent they are equivalent.

The term Supply Chain is relatively new and has been used to describe a range of horizontally organised systems.  There are three meanings that dominate discussions according to Quayle: [the supply chain from the perspective of an individual firm; a supply chain related to a particular product or item; and ‘supply chain’ used as a handy synonym for purchasing, distribution and materials management] (Quayle M,  Jones B. 1999. p4).  An individual firm is concerned with the chain at the input to the company, internal processes and output stages only and not necessarily from raw material to customer.  The supply chain for a single item has been defined as [a logistic process that includes all firms involved in ensuring that the final customer receives the right product, at the right cost, at the right time, in the right condition, and in the right quantity.  The whole supply chain is based upon the partnership / alliances that develop between manufacturing companies and their suppliers / vendors, customers and other logistic-related parties] (Coyle et al. 1996. p8). Thus the supply chain is a singular logistic process and is not equal to the concept of wider Logistics.

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The type of SCM depends upon what kind of supply chain is to be managed.  For an individual company SCM has been defined as [an integrating philosophy to manage the total flow of a distribution channel from supplier to ultimate customer] (Cooper M, Ellram L. 1993. p2).  [It is a strategic concept that involves understanding and managing the sequence of activities – from supplier to customer – that add value to the product supply pipeline] (Battaglia A, Tyndall G).  This varies from the definition for an individual item supply chain which is concerned more in ensuring [there is a ...

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