Differentiating Logistics and the Supply Chain
Logistics and supply chain is often discussed as one, yet hold distinct differences. As a third party logistics company with over 40 years of combined experience in the industry, we thought we’d shed light on the differences and similarities between the two.
From Napoleon to 2017
Logistics is one of many parts that make up the supply chain. Logistics is the process, planning and implementation of the transportation and storage of goods from point A to B. It has roots in the Napoleonic era where it dealt with the movement of military goods and supplies. Today, it deals with the movement of goods for business. It is inbound and outbound transportation, warehouse management, fulfillment and reverse logistics. It aims for low-cost delivery of products to and from distribution centers. Logistics can be internal to an organization or outsourced to a 3PL firm (such as us!).
From Logistics grew the Supply Chain
Supply chain management grew out of logistics in the 1980’s. It involves the many processes of the production and distribution of goods. The supply chain is the many aspects of how companies source raw materials, manufacture goods and distribute them to retailers and customers. It is logistics, procurement, supply chain planning, inventory management and manufacturing all in one.
So, what’s the similarity?
There is one main similarity when it comes to logistics and the supply chain. Both manage the process of production and distribution of goods! Whether a company is manufacturing a product to be delivered to a retailer or a 3PL ensures the delivery of that product from location A to location B.
The world of logistics and supply chain will always go hand-in-hand. Have something to add regarding the differences or similarities of the two? Let us know in the comments below.