Carandang, Steffi Jomari Feb 24, 2020

BAOC105-AM14
HW #1
What is more important - logistics management or supply chain management? Justify your
answer

It is well known that logistics management and supply chain management are integral
parts of most businesses and are essential to the company’s success and customers’ satisfaction.
Knowing how they serve different purposes to the company means that they are both important.
To emphasize their cooperative importance, we can say that logistics management has a key role
in a supply chain such as contributing to their customer satisfaction, total cost reduction, and
company profitability. Likewise, supply chain management sets an objective that improves
constantly in overall efficiency by means of integrated logistics management and comprehensive
logistic activities.

In determining who is more important, the following are factors or points of measure for
justification purposes: (1) as to purpose; (2) as to output; and (3) as to impact. First of all,
Purpose. Consumers of manufactured products and other goods, world-wide, are dependent on
logistics and the various activities involved therein, ensuring that the products and services they
require are accessible when, where and how they want them. Thus, Logistics management has a
purpose to ensure that there is a good and quality customer relationship that delivers in
accordance to how customers want it. On the other hand, Supply chain management has a
purpose to manage both the flow of materials and the relationships among the channel
intermediaries from the point of origin of raw materials through to the final customer.
(Christopher, 1998). Second, output. What do these different types of manages produce for the
company? Logistics management’s output, as identified by Stock and Lambert (2001), are as
follows: competitive advantage for the organization resulting from a marketing orientation and
operational efficiencies and effectiveness, and efficient movement to customer. On the other
hand, supply chain management diagnose problems, creatively work around interferences, and
figure out how to move essential merchandises to people in need as efficiently as possible.
Lastly, their Impacts. What do such management type do for the greater good? Logistics
management helps businesses deliver better service to their customers, it increases greater
visibility throughout your supply chain, improves efficiency and reduce costs through gaining
more control over ingoing and outgoing supplies, and it boosts revenue if your company
provides a better service to your customers, you can attract more business. On the contrary,
Supply chain management impacts societal roles such as ensuring human survival, improving
quality of life (by stable foundation of economic growth, job creation, etc.) and protection of
cultural freedom and development (protects the delivery of necessities).

Knowing how they differ and coincide taught me their individual relevance. But seeing
their differences through different factors such as purpose, outputs, and impacts, I have been able
to distinguish that Logistics Management is more important rather than the other because as I
believe that we create businesses to create customers and incur economic gain. Also, there are a
lot of Logistics activities that are key to most companies’ operations such as Customer service,
Traffic and transportation, Warehousing and storage, and Logistics communications that needs
necessary uptight management. And of course, even though logistics management is a part to the
entire supply chain it has greater and better purpose for the business, output to the stakeholders
and impact to those benefiting from it that is more efficient and leads to better outcomes such as
success and connectivity amongst other companies.