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Logistics is not Supply Chain Management, End of Story

There still seems to be much confusion about the terms “logistics” and “supply chain management”. Much like accounting, SCM takes a cross-functional perspective within an organization (this includes purchasing, R&D, marketing, sales, IT, and – logistics), but goes beyond the first and second tiers on both the supplier and customer sides. Therefore, supply chain managers are typically concerned with managing the relationships with channel partners. SCM relates to questions like: How can the bullwhip effect be avoided? How can production be ensured if a supplier’s supplier’s plant burns down? How can CO2 emissions of a product be measured, including the emissions of a supplier’s supplier’s plant, an LSP’s trucks, and disposal by consumers? What alternative types of governance are available to coordinate with a second-tier supplier or a retailer, if a direct contract with them is impossible (or you don’t even know who they are)? A logistics manager might ask some of these questions, too, but isn’t she mainly concerned with managing the flow and storage of goods and services?

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