The terms Logistics and Supply Chain have many similarities and have caused a lot of mix ups when freight shipping is discussed. While they hold many similar qualities they are, in fact, very different ideas with very different substances. Because of the continuous evolvement of the management of these concepts and intersections of all these sectors, the definitions of the terms Logistics and Supply Chain have been made indistinct. Hopefully this dive into the true meanings will help you gain some clarity on this subject!
Supply Chain is the umbrella term for the process starting at making the actual products to delivering them to the final customer. As you can see, this is an extremely broad term that covers countless steps of the management process. Supply Chain management includes the product development, purchasing and sourcing, manufacturing, and logistics and distribution of the product. A system with as many pieces as this one will naturally have numerous people involved focused on specific responsibilities. Within the orbit of collaboration in Supply Chain management there are the suppliers, retailers, manufacturers and wholesalers. All these responsibilities are in place to ensure that the finished product is delivered in the most effective way possible.
Logistics is only one part of the Supply Chain management process, but an outstandingly important one. It is the part of the process that plans and manages the movement and position of products. They are also responsible for communicating to the consumer where their package is every step of shipment. The purpose of Logistics is to ensure the goods are received by the consumer at the right place and time, appropriate price and in great condition. Logistics is a fraction of the Supply Chain management system which limits the organizations involved. Typically there is one singular party overseeing the operations rather than the array of collaborators existing in the management of Supply Chain.
Supply Chain management is “the big picture” and Logistics is one essential piece of the puzzle. These two terms will forever be linked to each other because of this. Even though these two terms have their dissimilarities, they supplement each other and cannot function without the other. consistently arrive when and where they are supposed to be. Because of the responsibilities they possess and the efforts of the organizations involved in Supply Chain and Logistics management we can expect our favorite goods to arrive when and where they are supposed to be and accomplish this exceptional consistency!