The Key Differences Between Logistics and Supply Chain: A Comprehensive Overview
Logistics and supply chain are two terms often used interchangeably, but they are not the same. While they are closely related and work together to move goods from point A to point B, understanding the differences is crucial for businesses and professionals in the industry.
What is Logistics?
Logistics is the process of planning, storing, and transporting goods from one place to another.
This involves planning how you move goods from one point to another, storing them in a safe and appropriate place, and finally delivering the goods.
In simple terms, Logistics is a process in which goods go where they need to.
For example:
Let’s say you order a pizza from Domino’s to your place. The sender (Domino’s) first needs to receive your order, check the delivery address, ask the delivery people for availability, and prepare your pizza; this is part of the planning stage.
Once the pizza is made, it is then put in a cardboard box so it can be placed in a specific place inside the store so the delivery people identify and pick them up easily; this is part of the storage stage for this example.
Finally, your pizza is transported and delivered to your place.
Of course, logistics are more complex than these simple steps, but this is an overall look at what the process basically is.
What is Supply Chain?
A supply chain is like a “big team” that works together to make a product and get it to the people who want it.
It starts with people who get the materials needed to make a product, then other people who put them together to make it, and finally, people who deliver the product to the store or your house.
The supply chain involves planning, storing, and delivering goods at each stage (Logistics) — Therefore, we can say a supply chain is made out of multiple ‘logistics’.
Overview:
There needs to be a plan to get the raw materials, and they need to be stored before they are delivered to a factory.
Inside the factory, the people in charge need to plan how and where are they sending the products, and store them before they’re sent to a store or to your house.
Key Insights
- Logistics is the process of planning, storing, and transporting goods from one place to another.
- A supply chain is like a “big team” that works together to make a product and get it to the people who want it.
- Logistics is part of a supply chain.
- A supply chain is made out of multiple ‘logistics’
