Difference Between Logistics and Supply Chain Management

There are a number of similarities between logistics and supply chain management, but it is important to know that they are not the same. Several key differences separate the two practices. It is important for businesses to understand the role each plays in improving operational movements and enhancing customer service. 

In this article, we will list the main differences between logistics and supply chain management and provide insights on what makes them unique.

What is Logistics?

Logistics plays an important role in supply chain management and involves managing the storage and movement within the supply chain. It also includes the planning and execution of the storage and transportation of goods between the supply chain networks. Logistics assists in gathering the workforce, resources and machinery required to move the goods from one location to the final destination.

What is Supply Chain Management?

Supply chain management means streamlining all the activities involved in the production of goods, from obtaining the raw materials to transporting the finished goods to the end-user. It uses an associative, integrated and multimethod approach with the aim of improving the supply chain process. The objective is to benefit the business and improve customer satisfaction.

Is Logistics the Same as Supply Chain Management?

No, logistics and supply chain management are not the same. When it comes to logistics vs supply chain management, logistics places its focus on the movement and storage of goods. However, supply chain management is a comprehensive process that coordinates all activities, such as the sourcing, production, movement, storage, and distribution of goods. In other words, logistics is just a part of supply chain management, while supply chain management is the whole process. 

Key Differences Between Logistics and Supply Chain Management With Examples

Now, let’s explore the difference between logistics and supply chain management in more detail: 

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To sum up, logistics is all about the transportation and storage of goods, while supply chain management includes the entire process from sourcing to delivery. Understanding the difference between logistics and supply chain management can help businesses optimise their operations and enhance customer satisfaction.