Logistics is a subsection of the supply chain involving the management of the flow of goods and services from the producer to the final consumer. The supply chain is a distribution process involving activities from sourcing raw materials, manufacturing, and supplying the product to the retailer to reach the final consumer (Anca, 2019). One of the significant similarities between logistics and supply chain is that they involve efficient movement of goods from the producer to the final consumer. Both aim to deliver goods to the final consumer with minimum damage and affordable transportation costs. Furthermore, they involve the management and efficiency of goods before reaching the final consumer (Anca, 2019). For instance, they both involve storing goods to protect them from theft or damage.
On the contrary, logistics and supply chain are different in several ways. Firstly, logistics is an internal operation while the supply chain is external. For instance, logistics involves distributing the product from the manufacturer to the final consumer, while the supply chain consists of sourcing raw materials from other companies and signing agreements with other firms for the transportation or storage of the product (Anca, 2019). Additionally, the supply chain involves the company’s compliance with the relevant authorities to ensure that the goods meet all the requirements to reach the final consumer. Secondly, logistics focuses on coordinating the marketing and production of the product. Meanwhile, the supply chain ensures a stable flow of distribution that starts from the production of goods to their procurement. For instance, logistics ensures that the product produced and distributed to the market meets the demand (Anca, 2019). In contrast supply chain ensures that the product in the market creates a competitive advantage, such as affordable pricing that makes a steady demand.
Discussion question: How do logistics and supply chain management complement one another?
Reference
Anca, V. (2019). Logistics and supply chain management: An overview. Studies in Business & Economics, 14(2).