Difference Between Logistics and Supply Chain

Big organizations manage their businesses carefully to make a profit. From the manufacturing of goods, transporting them, delivering them safely at the right time can be a tricky task to be managed.

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A firm which outsources its works requires ___________.

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Small scale firms are ____________ flexible in their functioning.

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Logistics vs Supply Chain

The difference between logistics and supply chain is that logistics is a critical part of the supply chain which manages storing and transporting of goods between different supply chains of on organization. On the other hand, the supply chain includes the entire process from the manufacturing of products to delivering them in the end.

Logistics vs Supply Chain

Logistics was the only management used decades back but now it has been replaced by the supply chain. Logistics is now a part of the supply chain.

Supply Chain is defined as the network between a company and its suppliers to manufacture and deliver a specific product or service in time. It manages all the processes starting from raw materials to delivering the product.

Comparison Table

Parameters of ComparisonLogisticsSupply Chain
DefinitionA process of storing and transporting goods and products.The entire process from manufacturing to after-sale services.
WorkPlanning and implementation of a business or operation, etc.Procurement, manufacturing, supply and demand planning, etc.
ObjectiveCustomer Satisfaction.Competitive Advantage.
EvolutionIt is an outdated concept to solely handle multiple organizations.It is a modern concept that has replaced logistics.
InterdependencyWorks independently. Supply Chain partially depends on Logistics.

What is Logistics?

Logistics is one of the primary objectives of the supply chain. It is defined as the management including the processes of acquiring, transporting, and storing resources from manufacturers to the customers.

The officers who were responsible for ensuring the supply and allocation of resources were called ‘Logistikas’. With the industrial revolution after World War 2, logistics advanced vastly with the introduction of technology.

It plays a huge role in the overall reputation and future scope of its organization. There are namely five elements of logistics including storage, packaging, inventory, transport, and control.

Ever since the emergence of new companies, the manufacturing rate, complexity, infrastructure, investment, etc., have increased and as a result, managing all the work is also a vast operation.

What is Supply Chain?

Supply Chain is defined as the entire process of manufacturing and selling commercial products, including every step from the supply of resources and the manufacture of the products through to their delivery to the customer.

The major objective of the supply chain is gaining a competitive advantage in the business. For example, if a product of some company is well made, it is delivered to the customer in time, and the company offers excellent services regarding the product to its customer then the customer is likely to invest in the company’s products again.

Every stage of a supply chain is essentially an industry by itself. If there is a disturbance in any activity of any stage, the whole supply chain delays and the company suffers considerable losses.

Main Differences Between Logistics and Supply Chain

  1. The fundamental concept of logistics has already evolved whereas supply chain is a modern concept and is considered as the new version of logistics.
  2. Logistics is a narrower concept associated with only maintenance and storage whereas supply chain is a broader concept which refers to the connection of manufacturers with the consumer.
Difference Between Logistics and Supply Chain

References

  1. https://faculty.biu.ac.il/~shnaidh/zooloo/logistics-her/B27-63.pdf
  2. https://onlinelibrary.wiley.com/doi/abs/10.1002/j.2158-1592.2001.tb00001.x
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