CONTENTS: Page

1.1 Introduction ……..2

2.1 Supply Chain Management ……..3

2.2 Logistics ……..4

2.3 Integrated Logistics Support ……..6

3.1 Similarities ……..7

3.2 Differences ……..8

3.2.1 SCM vs Logistics vs ILS ……..9

4.1 Conclusion …….11

5.1 References …….13

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1.1 Introduction

People has been confused for the terms logistics, supply chain

management and intergrated logistics support. These three terms has

become a confusion among the public when comes to definition and its roles

(Aitken, Christopher & Towill, 2002). This paper will explore the definitions,

frameworks and terminology of these terms. The terms has become essential

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among logistics researchers, managers and educators. As the size, cost and

strategic importance of energy projects is increasing, it is essential to have a

structured approach to planning, design, construction and operation. The

logistics, supply chain management and intergrated logistics support will

ensure the human life-style will receive effective and economical support and

also meet its requirement.

There are several problems happened in implementing several projects by

the government due to the increase in technological developments and

introduction of new and complex systems in the areas of the defense, energy

and process industries. The terms like logistics and supply are always

associated during the military maneuever. Logistics and supply also was

originally linked during the civilian life of ancient Greece in 5 th century.1 Sun

Tzu in his book, Art of War also emphasized the importance of logistics and

supply in human daily life, mainly for an organization. He also noted about the

needs of logistics balancing to meet the demand in the time of war and the

capacity of a country and also the newly gained territories. 2

Generally, supply chain management is the main topics regarding all the

activities that based on the sourcing, procurement, conversion and logistics

management. It also consists of the collaboration and coordination with other

parties such as intermediaries, suppliers, distributors and customers. Both

1 See Gösta, B. Jhde, Transport, Verkehr Logistik, Verlag Franz Vahlen 1984, München pp.

23-25

2 Sun Tzu, Sztuka Wojny , Warsaw 1994, pp. 11-17.

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logistics and integrated logistics support are subordinate from supply chain

management. This is where the public keep confusing with these three terms

because they do share some of the characteristics with each other but the

functions are different.

2.1 Supply Chain Management

The management and administration that connected from suppliers to the

ultimate consumer is known as Supply Chain Management. Many years have

passed by which drastic change already occured regarding on how business

is conducted. Supply Chain Management (SCM) also evolved as an

improvement over logistics management due to technological advancement. 3

According to Professors David Closs, Donald Bowersox and M. Bixby

Cooper in Supply Chain Logistcis Management, SCM is based on

colllaboration and cooperation between firms and organization to connect

customers, suppliers and other partners a means of increasing efficiency and

producing value for the end consumer. In other words, Supply Chain

Management is considered as a strategic decisions and established “the

operational framework within which logistics is performed.”

Supply Chain Management (SCM) is a interconnected activities series

that based on the transformation and movement of raw material until the

3 Harland, C.M. (1996) “Supply Chain Management, Purchasing and Supply Management, Logistics, Vertical
Integration, Materials Management and Supply Chain Dynamics.” In: Slack, N (ed.) Blackwell Encyclopedic
Dictionary of Operations Management. UK: Blackwell.

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goods is finished to be given to the user. It is the result of the efforts of several

organizations that assisted in creating this chain of activities successful. The

organizations may include firms, companies, partners, suppliers,

manufacturers, retailers, wholesalers and consumers (Harland, 1996).

Activities that will occur in SCM include logistics, integration, sourcing,

procurement, production, testing, performance measurement and customer

services.

Supply Chain Management (SCM) is a multi-dimensional approach will

manage and administer the flow of raw materials and semi-finished goods.

Then, the products that has been completely processed within the

organization will be given to the final consumer with a perfect and complete

emphasis on the customer requirement.

2.2 Logistics

All logistics elements are a part of supply chain management. However, it

was two different entities. Back then, logistics were associates with military on

moving the resources and keep the troops moving. Nowadays the term is

widely used in business.4

According to the Council of Supply Chain Management Professionals,

Logistics can be defines as “part of supply chain process that implements,

plans and control the effective, efficient forward and reverses flow and storage
4 Lambert D., M., Stock J., R., Strategic Logistic Management, R.D. Irwin Inc., Boston, 1993.

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of goods and services. It is also related information between the point of origin

and the point of consumption in order to meet customer’s requirements.”

Logistics is widely known as the process of moving and coordinating

resources such as people, inventory, equipments and materials to another

desired location from one location (Blancard, 1981). The company actvities

that include purchasing and delivery of raw materials, packaging, shipment

and transportation of goods to distributors are refered to logistics.

It must be noted that management of logistics can include all business

activities such as inbound transportation, outbound transportation, fleet

management, warehousing, materials handling, order fulfillment, inventory

management and demand planning.

Logistics plays the major role on preventing the failure of a business.

Many small businesses must ensure the products reach the customers

instead of focussing on design and production of their products or services.

Profit of a business depends on the efficiency of the raw materials that can be

purchased, transported and stored until be used. The resources need to be

coordinated in order for the materials to reach the customers. The products

must be produced and shipped in an accurate time in order to satisfy the

customers and incrase the company’s profitability and long-term viability.

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2.4 Integrated Logistics Support

While supply chain management and logistics ensure the products given

to the certain organizations, Intergrated Logistics Support will provide the

system to ensure the process run smoothly. Intergrated Logistics Support

(ILS) is the technical and management process through the logistics activities

such as logistics support considerations of material solutions (Carter and

Price 1993). It is also the elements of logistics support which are accurately

and timely planned, acquired, implemented and tested.

ILS is the set of all considerations necessary to increase the effective and

economical support of a system throughout its programmed life cycle. ILS is a

part of the larger Supply Chain Management (CSM), which is an integral part

of all aspects of design, development, system definition, installation and

operation. In other words, ILS is an iterative and integrated process that made

the system easier to support for developing materiel. It also will caused the

logistics demands to decrease as ILS optimizes functional support, guides the

system to decrease the logistics supply and resources.

Integrated Logistics Support is focused on developing the support solution

to assure supportability and life cycle costs. Thus, the products or logistics will

meet the required performance by designing, developing, acquiring and

providing the support system that will maintain the operational readiness of

the logistics that would be supplied. ILS also will also reduce the faulty in the

logistics distributions which would sometimes excessed from the initial

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demands. Therefore, ILS will assist the organization to ensure that the

logistics in the supply chain will anticipate the customers wants and needs

without any error or fault.

Integrated Logistics Support focused on these following characteristics

and elements. Maintainability and reliability. Maintenance planning. Support

and test equipment. Management data. Funding. Personnel and training.

Facilities. Technical data. Transportation and handling. Supply support. These

elements and characteristics are vital towards the complexity and criticality of

the flow and movement of products that has evolved over the years due to the

technological advancement.

3.1 Similarities

Most public conception of these three terms; supply chain management,

logistics and integrated logistics support are various and they have their own

understanding about the interpration of these terms. They often suggested

that there is no difference between the three terms and considered supply

chain management is the new logistics. (Croom et al. 2000)

According to Michael Kirby of National Distribution Centers (2016)

described that supply chain management (SCM) associates in the field of

logistics while logistics is a number of sub-processes within SCM. Based on

William Behrens of Associated Transport Systems, Inc (2016) stated that a

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‘supply chain management’ firm is generally a third-party operator

administrating and managing the overall flow and movement of product

whether inbound or outbound. Integrated Logistics Support will ensure the

product or logistics flow in good order to the consumer.

Based on the explanation above, it can be said that supply chain

management (SCM), logistics and integrated logistics supply are linked and

incorporated with each other.5 The functions of these terms are to enhance

the flow of the logistics to the wanted organization. All these terms are

inseperable that have the same goals and objectives; provided goods and

services to the organization that needed. These three terms supplement each

other and do not contradict.

3.2 Differences

Supply Chain Management (SCM), logistics and integrated logistics

support (ILS) are three different entities where the public keep confusing.

Based on the definition that stated early in this paper, it can be understood

that logistics is a minor part of supply chain management (SCM) that

manages with the administration and management of goods and services in

an efficient way. While Integrated Logistics Support is an integrated system

5 Stank, T., Davis, B. & Fugate, B. (2005). A strategic framework for supply chain oriented logistics. Journal of
Business Logistics, 26 (2), 27-46.

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that provided many ways for the movement of products ran smoothly towards

the ultimate consumer.

Over the caused of years, these three terms has evolved in the manner

which it has associated more to business activities than military. During the

early years such as in the Napoleonic era, the term logistics was essential in

supplying troops in order to get it moving (Van Creveld, 2004). After the end of

the Second World War and the introduction of computers, the term supply

chain management has become a norm on running and administering the

larger movement of products and supply to its consumer. 6 As the world

entered 21st century and the technological, the usage of computer has

become extensive and widen. Therefore, Integrated Logistic Support (ILS)

was created in order to minimize the over-excess logistics management as

the consumer begins to demand supply. Therefore, ILS will ensure that only

necessary and acurate products to be sent towards the consumer to avoid

faults and error on supply movement.

3.2.1 SCM vs Logistics vs ILS

The comparison between these terms also plays an important role in

order to ensure the public understand that there are difference between these

terms (Qi, Y. and Chi, Z.F. 2009).

6 Van Creveld, M. (2004). Supplying War, Cambridge University Press, New York, NY.

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 The definition for Supply Chain Management is the coordination and

management of the supply chain activities. While Logistics is a process of

that deals with the movement, flow and maintenance of goods in and out of

organization. Integrated Logistics Support is a process that develope the

support solution to assure supportability and life cycle costs of the products.

The objective for SCM is to benefit every competition between the

organizations. While Logistics is to satisfy the customer needs and wants.

ILS is created to reduce faults and error while supplying the products.

These terms also evolve over times. SCM is known for its modern and

broader concept of logistics. While the concepts of Logistics has been used

before the introduction of modern computer. ILS is a concept that emerged

after the world enters technological advancement mainly in late 20 th century.

Supply Chain Management (SCM) involved the movement of logistics to

multiple organizations and consumers. While Logistics only involved mainly

with a single or two organizations such as military and government.

Integrated Logistics Support is able to deal with many organizations due to

its function as to minimize the excessive supply delivery thanks to its advance

processing system.

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 Generally, Supply Chain Management is the latest version of Logistics.

While Logistics is a subsact and incorporated in the broader Supply Chain

Management. These two terms will be assisted by Integrated Logistics

Support that it will ensure that the process of delivering the products will be

on the exact time and ease the flow of the supply and products movement to

the many consumers.

4.1 Conclusion

The public opinion regarding on Supply Chain Management, Logistics and

Integrated Logistics Supply must acknowledge the difference between the

three terms mentioned. This to avoid any confusion from the usage of these

terms when conducting the business negotiation and administration. It has

been acknowledged that the failure of the logistics management in the past

was due to lack of understanding of the difference between these three terms.

One must acknowledge the difference, characteristics, objectives and how

these terms functioned. It must be noted that Supply Chain Management

(SCM) is the main and broader subjects of the current administration and

management of supply throughout the organization. SCM has substituted the

logistics management as delivering products has become more complex as it

entered 20th century due to extensive demands from various organization.

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 The introduction of Integrated Logistics Support (ILS) has been used as a

platform to solve an overflowing and faulty demands from an organization. ILS

will ensure the consumer or organization only meets the required products

needed only without having any excessive products given to them. This

integrated system has helped to decrease the costs and increase the return

on investments.

It must be noted that Supply Chain Management, Logistics and Integrated

Logistics Support has one goal which is to provide the goods, services and

products to its consumer without failed. Over times, human has evolved these

supply management in order to meet the demands of the consumers that

need and want the producted to be delivered to them. Public opinion now will

understand the differences, definition, objectives and characteristics between

these three terms in assisting the business management.

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5.1 References

1. Harland, C.M. (1996) “Supply Chain Management, Purchasing and

Supply Management, Logistics, Vertical Integration, Materials

Management and Supply Chain Dynamics.” In: Slack, N (ed.) Blackwell

Encyclopedic Dictionary of Operations Management. UK: Blackwell.

2. CROOM, S. R., ROMANO, P. and GIANNAKIS, M., 2000, Supply chain

management: an analytical framework for critical literature review.

European Journal of Purchasing and Supply Management, 6, 67–83.

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3. CARTER, J. R. and PRICE, P. M., 1993, Integrated Materials

Management (London: Pitman).

4. See Gösta, B. Jhde, Transport, Verkehr Logistik, Verlag Franz Vahlen

1984, München pp. 23-25

5. Lambert D., M., Stock J., R., Strategic Logistic Management, R.D. Irwin

Inc., Boston, 1993.

6. Blanchard, B.S., "Logistics Engineering and Management 2nd Ed.

Prentice-Hall, 1981.

7. Qi, Y. & Chi, Z.F. (2009). The impact of supply chain strategies on

supply chain integration, Proceedings in International Conference on

Management Science and Engineering, ICMSE-14-16 September

2009.

8. Stank, T., Davis, B. & Fugate, B. (2005). A strategic framework for

supply chain oriented logistics. Journal of Business Logistics, 26 (2),

27-46.

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9. Van Creveld, M. (2004). Supplying War, Cambridge University Press,

New York, NY.

10. Bowersox D., Closs D. and Cooper M. B. “Is Logistics the Same as

Supply Chain Management?” May 10th 2016

https://www.michiganstateuniversityonline.com/resources/supply-

chain/is-logistics-the-same-as-supply-chain-management/

11. Aitken, J., Christopher, M., & Towill, D. (2002), Understanding,

implementing and exploiting agility and leanness. International Journal

of Logistics: Research and Applications, 5(1)

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