The terms “supply chain” and “logistics” are often used interchangeably in the transportation and trade sector, however you should know the difference between supply chain and logistics as each has specific processes, duties, and responsibilities that differ from the other.
The confusion in the distinction between supply chain and logistics is believed to result from many people considering logistics as a subcategory in supply chain management.But the main difference between supply chain and logistics is that the latter is just a dedicated part of the entire supply chain operations.
- logistics :
In general, logistics focuses on the transportation and physical storage of goods, and deals with things like inland and outbound freight, reverse freight, communications in transit, and warehouse warehousing.
Logistics also deals with the delivery of goods, freight forwarding, coordination between external third party carriers, fleet management and other activities directly related to the actual transportation of goods from one point to another.
Depending on the company’s needs, logistics management may also include manufacturing, packaging, price negotiation for various aspects of transportation, integration with third party companies, procurement, technology and communications, and customer service.
- Supply Chain :
When learning about the difference between supply chain and logistics, you should know that supply chain is the bigger picture between the two.
As supply chain management is the umbrella covering all aspects of sourcing and purchasing of goods, basically supply chain management forms and manages business links between companies that allow goods to be sold to consumers in the end.
Logistics—essentially shipping from one place to another—is a function that falls under the broad umbrella of supply management, and is just one part of the entire process.