Both logistics and supply chain management are important for medium to large-sized business models. Both have different roles but are equally important and very much required to keep the company’s processing going smoothly. So, what is the difference between logistics and supply chain management? The answer is simple, logistics is all about managing the process of integration and maintenance whereas, supply chain management is all about management and movement of supply chains and sustaining coordination among them. This means we will be describing the benefits of logistics software and supply chain management software separately to explain what software for each of these do.
What Does a Supply Chain Management Software Do?Supply chain management software is a tool that is used to manage supply chain operations like:
- Quality management
- Vendor management
Promote VisibilityTransparency and visibility in a business give the edge to the third parties like vendors, distributors, and suppliers to trust your company and extend contracts. This is done by providing a unified view of processes, people, and business operations in supply chain management software. This enables managers, executives, CEOs, and other decision-makers in the company to perform better.
Improved EfficiencyA company is only able to improve and enhance efficiency in their business operations and processing when they implement good and reliable supply chain management software. This helps in eliminating any errors before they even occur and this results in executing processes smoothly and seamlessly.
AnalyticsData is everything for a company but with an implemented supply chain management software, you will be able to see meaningful data that will give the latest and useful insights about the company’s progress, employees’ progress, profits and margins, forecast risks and suggest solutions and so much more.
Cost-EfficientA company only does good business when the production cost is less and that can be done by equipping the best supply chain management software which will allow you to monitor the quality of stock, reduce waste and keep track of shipments.
Reduced RisksBusinesses have to face environmental, political, and technical economic risks but that can be reduced when good planning is done with the help of AI data-driven insights furnished by smart supply chain management software. An AI-powered supply chain management software can also show insights on trends which can make you more aware of business risks – you can then make required decisions.
What Does a Logistics Software Do?Logistics enables the flow of entities from an initial point to the consumption stage (this includes customers and businesses). Logistical operations include tracking, scheduling, and monitoring deliveries and their methods, seeing transportation modes, and management of vendors. You can say that logistics is a part of supply chain management which includes implementation and planning to transport products to the customers. Logistics also include the following:
- Planning demand and supply
- Managing third-parties
- Control inventory
- Order processing
- Fleet management
- Warehouse management
- Inbound and outbound transport management
- Distribution and sales
- Managing suppliers