Main Differences between Logistics and Supply Chain

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Main Differences between Logistics and Supply Chain

Although sometimes confused, these two concepts are quite different. Logistics plays a role within the supply chain. Supply chain, on the other hand, has a very comprehensive role, being present in all stages of production and distribution.

Supply Chain and Logistics are two different things, they are not synonymous. However, even though they are different concepts, there is a certain dependency between them.

In this post, we will talk about the main differences between supply chain and logistics, and also what their relationship is.

Logistics

Logistics are focused on storage and delivery time. It also refers to organization, transportation issues, physical location, etc.

This whole process can be summed up as a technical function, a step within the supply chain. It is an internal process, with the possibility of outsourcing as a way to reduce some costs

Supply chain

Supply chain,  comprehends all the processes related to the product, from the purchase, storage, distribution and consultation of customer satisfaction.

This cycle of procedures includes manufacturers, warehouses, suppliers, distributors, consumers and retailers. In other words, supply chain is a branched and integrated structure, whose processes are on different fronts, being a more complex process.

Now, to better highlight what has already been said, we have separated everything you need to understand about the differences between supply chain and logistics in topics. Check it out:

Logistics:

  • Specialized part within the supply chain, focusing on transportation and storage;
  • Refers to the physical movement of the product, and focuses on the delivery time;
  • It is an internal process, can be outsourced, seeks to reduce costs and implement the just in time distribution model.

 

Supply chain

  • Covers all aspects of the purchase and supply of consumer goods;
  • Responsible for tasks related directly or indirectly to the product;
  • It is a strategic bias that addresses acquisition, logistics, planning and others;
  • Its purpose is to obtain competitive advantage, encouraging innovation and reducing costs.

 

How to Integrate Supply Chain and Logistics

Yes, in a way, these two things are already well connected, but it can be improved. How? With Integrated Logistics. This process focus on maximising integration in the organization.

Intelligent systems are used to control both the logistic flow and other interconnected activities.

Basically, integrated logistics involves three major groups: materials management, material handling and physical distribution.

Logistics and supply chain have many differences, but we must not forget that they are linked and one depends on the other to perform its function successfully, managing to increase productivity, reduce costs and bring good results to the organization.

The supply chain and logistics are different and distinct concepts, but they have an interdependence and make a big difference in business results. Hopefully we helped you and don’t forget to share this article with your friends!

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