What is the Difference between Logistics and Supply Chain Management?
Logistics and Supply Chain Management are both vital aspects of the distribution of goods for any business. Although both topics focus on transporting goods, both are very different in their approach and knowledge spread.
To simply explain, Logistics is the movement of goods and supplies from one destination to another. Logistics originated in the 19th century as "Logistique" which was used to explain the movement of military equipment (1). Over time logistics has moved away from its military background and is used by businesses to transport their physical goods.
Supply chain management is a holistic and strategy focused overview of logistics. This discipline encompasses all aspects of how companies source raw materials, manufacture goods, quality check and distribute them to retailers and customers. To further explain, think of supply chain management like this: Logistics is a part of Supply Chain Management.
To further explain the differences and similarities between Logistics and Supply Chain Management, the diagram below has been created.
With an ever-changing business world due to technology, it is crucial for businesses to harness innovation to further drive their business products and ideas but also to manufacture and distribute their goods in the most cost and time-efficient manner. Although Logistics and Supply Chain Management have two different practical focus', both of their core focus will always be to manage the flow and process of bringing goods to the market.
To further manage your logistics, a outsourced partner such as a Freight Forwarder (FF) can be helpful. Read more about how FF's can be helpful to your business. By gaining access to a network of suppliers, providing unobtained information, constant shipping tracking and updates and competitive pricing, Freight forwarders can be pivotal to manage the next growth stages of your business.