The terms logistics and supply chain management are sometimes used interchangeably. The line that appears between these two concepts appears blurry for some people. These two concepts also have relationships, each possessing distinctly different functions and objectives, comprised of specialized tasks and responsibilities. In today’s blog, we would like to point out what is the difference to clear up the confusion for some people.

Definitions

A supply chain is the entire process of customer-supplier communication, which involves several layers in between. To satisfy the customer’s needs, it is a flow of all capital. These resources include data, material, and money for the most part.

In a general sense, logistics is the management of the flow of things between the point of origin and the point. you can think of the supply chain as a network — of producers, distributors, wholesalers, retailers, etc .— as compared to a number of specific functions.  

Logistic is a fraction of chain supply management.  A supply chain is a term used to describe an entire business philosophy, encompassing all internal and external supply chain processes, including logistics. 

 Purpose

The purpose of logistics is to provide timely delivery for the primary sake of customer satisfaction.

The goal of supply chain management is supply chain optimization for the sake of competitive advantage, as in the most efficient and cost-effective methods for those working within a supply chain.

Key differences 

  • The movement of goods is defined as logistics from one point of origin to another. Supply chain management is defined as the movement and implementation of supply chain operations.
  • The main aim of Logistics is full customer satisfaction. Conversely, the main aim of Supply Chain Management is to gain a substantial competitive advantage
  • Logistic is only a small part of supply chain management.