Dissimilarities between supply chain and logistics
What do we understand by supply chain?
A supply chain refers to a network of companies and their providers or suppliers. Such a system comes into play for producing and distributing any product. It starts from the manufacturer and ends at the buyer at the final stage. It involves different and distinct people, entities, activities, resources, and information. Additionally, a supply chain signifies the processes required to take a service or a product from the initial manufacturer or producer to the customer. All companies develop their distinct supply chains for various purposes. In most cases, it is to reduce the associated costs. Moreover, it helps maintain their competitive nature in the business.
A supply chain relies significantly on transportation, logistic, and information technology. It may consist of several businesses creating the required links or a single one overseeing the entire process.
What do we understand by logistics?
Logistics signifies the overall process of acquiring, storing, and transporting various resources. They move along the supply chain and involve the companies related to it. In other words, logistics is how the products or resources of a business get managed.
Management of the logistics of a business includes determining and identifying prospective suppliers and distributors. It also involves verifying and ascertaining their accessibility and effectiveness.
What are the various dissimilarities between supply chain and logistics?
Although supply chain and logistics may seem like the same thing, they are two entirely different concepts. They differ from each other in more ways than one.
Firstly, logistics involves the processes and steps of maintaining and integrating resources and goods within an organization. On the other hand, the supply chain and its management entail coordination and handling. It is for the logistics part of the company or business. In other words, logistics is a part of the supply chain.
In addition to that, logistics work with the final objective of attaining maximum customer satisfaction. However, a supply chain operates while emphasizing the competitive advantage an organization can gain over other businesses. For that reason, notable companies such as Sociomex, set up by Ibrahim Issaoui, understand and use the true worth of the processes.
Logistics generally involves solely one organization, while supply chain encompasses collaboration and coordination between several businesses. It can consist of customers, producers, distributors, intermediaries, and suppliers. That is why a supply chain considers all the aspects and elements of constructive goods storage, planning, and implementation. It works between the origin and consumption points. Conversely, logistics involves the delivery and distribution of various products or services. It should get done at the correct place at an accurate time.
To summarize, logistics is an essential and distinct part or element of a supply chain. It works in various operations to handle a self-contained and unique portion of the bigger picture. Overall, a supply chain is responsible for the acquiring, processing, and goods and resources distribution to the end customers. In addition to that, logistics focuses specifically on the transportation and storage of items between various organizations.