Logistics vs Supply Chain Management
The terms “logistics” and “supply chain” have endured a “tomato, tom-ah-to” situation, in which they are all too often used interchangeably. Believe it or not, these two words actually posess a few notable distinctions.
First things first, logistics deals with the movement of goods from a single company’s perspective, meaning the movement of materials and goods one company receives and manages internally, as well as the external transportation of the goods to the customer.
On the other hand, a supply chain is the network of businesses involved sequentially in the production or distribution of goods or services. In short, logistics is generally a single-company issue while the supply chain is a multi-company issue.
While logistics may be coordinated throughout part of or even the entirety of the supply chain, each segment is the responsibility of one entity, until it hands off the material or product to another entity in the supply chain.
In its most basic form, logistics components are:
- Intake from suppliers and material handling
- Labeling, packaging into smaller units, organization and warehousing
- Inventory management for production or distribution
- Demand planning
- Order fulfillment
In theory and practice, logistics and supply chain seemingly go hand-in-hand, but it’s important to remember that there are subtle nuances that distinguish the two, which illustrate the larger picture. If you are interested in learning more about how C.L. Services can support your organization’s logistics and supply chain, please submit the form below to be put in contact with one of our in-house logistics experts.
Director of Marketing & Media, C.L. Services