Many people believe that logistics and supply chain management are the same thing. After all, they both deal with the transportation and coordination of goods. However, there are some key differences between the two that are important to understand. Logistics is concerned with the actual movement of goods, while supply chain management encompasses the entire process from raw materials to the finished product.
In other words, logistics is a part of supply chain management. Understanding the difference between these two terms is important for anyone involved in the transportation or coordination of goods. Keep reading to learn more about logistics and supply chain management, and how they differ.
What is logistics?
Logistics is the process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from point of origin to point of consumption for the purpose of conforming to customer requirements. In other words, logistics is the management of resources in order to get them where they need to be.
Supply chain management, on the other hand, is the coordination and management of all activities along the supply chain — from the procurement of raw materials all the way to delivery of finished products — in an effort to provide customers with the goods or services they need in a timely and cost-effective manner.
What is the supply chain?
The supply chain is the network of organizations that are involved in the process of transforming raw materials into finished products. The term logistics is often used interchangeably with supply chain, but there is a distinction between the two. Logistics refers to the activity of managing the flow of goods and resources within the supply chain, whereas the supply chain encompasses all of the activities involved in getting goods and materials from suppliers to customers.
Difference between logistics and supply chain
The words “logistics” and “supply chain” are often used interchangeably, but there is a difference between the two concepts. Logistics refers to the process of planning, implementing, and controlling the efficient and effective flow of goods, services, and information from point of origin to point of consumption. A supply chain, on the other hand, is a network of facilities and distribution options that performs the functions of procurement, production, and distribution.
A key difference between logistics and supply chain is that logistics is concerned with the movement of goods, while supply chain is concerned with the management of materials. In other words, logistics deals with the physical movement of goods from one point to another, while supply chain includes all activities related to the flow of materials from suppliers to customers.
Logistics can be viewed as a subset of supply chain management. In other words, all logistics activities are part of the supply chain, but not all supply chain activities are logistics activities. For example, customer service and order processing are important part of the supply chain but are not considered logistics activities.
Importance of both in businesses
Logistics and supply chain management are two terms that are often used interchangeably, but they actually refer to two different aspects of the business world. Logistics is the process of planning, executing, and controlling the transportation and storage of goods and materials. Supply chain management, on the other hand, is the coordination of all activities involved in the procurement and delivery of goods and services from suppliers to customers.
While both logistics and supply chain management are important for businesses, they each play a different role. Logistics is concerned with the movement of goods, while supply chain management encompasses all aspects of the procurement process. In order for businesses to run smoothly, it is important to have a good understanding of both logistics and supply chain management.
If Your Looking For Best Local Logistics Company In Dubai , How Nextmover.
There are definitely similarities between logistics and supply chain management, but there are also some key differences. Logistics focuses more on the transport and storage of goods, while supply chain management encompasses the entire process from sourcing raw materials to delivering the final product to the customer. Both disciplines are essential to businesses that deal with physical goods, and both require a high degree of coordination and planning.
