What is the difference between logistics, procurement, and supply chain management?

While logistics, procurement, and supply chain management are sometimes used interchangeably by some people. However, they are distinct business processes with distinct meanings.

Supply chain management?- Supply chain management is a broad umbrella phrase for activities to maintain the balance between demand and supply. It encompasses the complete management of activities right from procurement of materials and converting them into finished goods to ensuring delivery at the right time to reach the end consumer. It manages the upstream and downstream flow of materials, final goods, and related information among suppliers, companies, resellers, and final consumers.

Logistics?- Logistics refers to the transportation, storage, and flow of commodities, services, and information within a broader supply chain. Furthermore, logistics can be divided into two parts, inbound logistics, and outbound logistics. Inbound logistics include the actions involved in acquiring items, as well as managing, storing, and transferring them. On the other hand, outbound logistics include all actions related to the collection, maintenance, and delivery of goods to customers. The goal here is to ensure that the consumer receives the requested goods at the correct time and location, with the proper quality and price.

Procurement?– Procurement, another critical aspect in supply chain management is defined as the process of acquiring the goods or services required by your firm to run its operations. Developing quality standards, finding the appropriate suppliers, negotiating pricing, financing purchases, purchasing items, inventory control, and waste management are all part of the procurement process.