Logistics Manager vs. Supply Chain Manager

It is not uncommon for Logistics Managers from yesterday to become Supply Chain Managers in another business today. When an organization hires key individuals, they are not interviewed by a person with superior expertise and experience, but by an expert from another area such as HR or operations. If the new Supply Chain Manager does not have enough information or experience, the decisions he makes may be bad and lack proper strategy.

Logistics managers have long focused on products transit and storage, which includes effective planning and execution strategy. He may not be involved in forecasting and demand planning because most organizations have teams from Sales & Marketing, Operations, and Planning. A classic manufacturing company is divided into three divisions: S&M, Operations, and Logistics.  

If we do not have a clear plan, these three divisions may work in silos, resulting in communication gaps/miscommunication and many wasteful processes. If S&M forecasts according to their strategy, the operation may be unable to meet S&M requirements, or the logistics team may be unable to deliver on time.

Supply Chain Management is the best solution for transparency and fast delivery comparing with logistics management. The key responsibilities of Logistics Managers and Supply Chain Managers are as follows.  

Logistics Manager Responsibilities

• Logistics Manager oversees and coordinates key aspects of logistics in the company. Collaborate with sales team and customer service team to ensure supplies are stocked and delivered to customers in a timely manner. Implement and maintain operating policies on general logistics and product procedures. Optimize and maintain inventory based on demand and supply chain activities.
• Strategically plan and manage logistics, warehouse, transportation and customer services
• Organize transportation activities, including storage of goods, managing information accrued from point of origin to delivery, orchestrating transportation movements, and arranging for services as necessary
• Coordinate and track movement of goods through logistic pathways
• Execute logistics plan to move products and packages to reach destinations on schedule
• Review freight rates and other transportation costs to keep working costs low
• Maintains quality throughout the logistic processes
• Direct, optimize and coordinate full order cycle
• Liaise and negotiate with suppliers, manufacturers, retailers and consumers
• Keep track of quality, quantity, stock levels, delivery times, transport costs and efficiency
• Resolve any arising problems or complaints
• Supervise, coach and train warehouse workforce
• Meet cost, productivity, and accuracy and timeliness targets
• Maintain metrics and analyze data to assess performance and implement improvements
• Organizing shipments
• Coordinating drivers, vehicles, loads and journeys
• Operating IT systems to manage timings, costs and stock levels
• Analyzing data to assess performance, discover logistical problems and devise plans for improvements
• Negotiating and agreeing contracts
• Planning for and negotiating technical difficulties
• Preparing paperwork for regulatory bodies
• Liaising with and managing staff and shifts
• Monitoring stock and managing waste
• Ensuring health and safety standards are met.

Supply Chain Manager Responsibilities

• The Supply Chain Manager manages all aspects of the organization's supply chain management and operations, including procurement, vendor relations, production, logistics, and distribution. Develops and implements plans for managing supply chain processes for production and operations. Oversees demand forecasting, supply planning, and procurement to ensure resource requirements are satisfied. Communicates with executives regarding business needs to secure resources needed to satisfy customer demands and ensure delivery and/or implementation. Other responsibilities as follows.
• Identify and drive continuous improvement opportunities to streamline process and improve accuracy and efficiency within operations.
• Collaborates with other departments and stakeholders to identify and maintain resources needed to establish and provide an effective supply chain.
• Establishes performance metrics for measurement, comparison, or evaluation of factors affecting the supply chain.
• Develops and maintains detailed inventories of materials and supplies located in the company, at sites, and in the factory.
• Maintains required quantity of supplies and materials to optimize production.
• Analyzes current inventories and procedures; suggests improvements to increase efficiency of supply chain and profitability for the company.
• Develops policies to increase efficiency throughout the supply chain while ensuring quality and safety; implements subsequent changes to processes.
• Identifies optimal shipment and transportation routes with attention to consolidation of warehousing and distribution.
• Assesses the need for material-handling equipment and staffing; makes recommendations to ensure efficient loading, unloading, movement, and storage of materials.
• Negotiates prices for raw material and delivery with suppliers, vendors, and/or shipping companies.
• Participates as an advisory member of the product development team, providing information and guidance on availability and cost of supplies and materials.
• Acts as part of the team coordinating engineering changes, product line extension, or new product launches to ensure timely and orderly material and production flow transitions.
• Monitors the performance of suppliers, assessing their ability to meet quality and delivery requirements; identifies and qualifies new suppliers in collaboration with other departments.

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