We often find that not everyone knows how to differentiate between logistics and supply chain. Moreover, they tend to talk about the terms as if they were the same. However, although they overlap, the tasks developed in each of the activities are not the same.
Next, we will explain what are the differences between logistics and supply chain and why they should not be confused.
Logistics and supply chain, what are they and what tasks are carried out?
When we talk about Logistics, we refer to all those activities developed in the planning, execution and control of the products from the origin, until they are delivered to the final customer.
Exactly, if we had to define the logistics we would do it in the following way: “deliver the right product, in the right place, at the right time, in the right amounts, at the right cost and quality, but always in accordance with the agreed conditions with the client”
But, exactly, what are the functions performed in logistics?
Some of the activities included in the logistics are:
• Procurement and storage management.
• Transportation Management.
• Inventory maintenance.
• Orders management.
• Supplier management.
On the other hand, when we talk about the supply chain, we refer to all the activities involved from the beginning of the product until the end of its life. This process includes all the logistic activities, as well as the operations of production, marketing, sales, design, finances, etc.
Logistics, a fundamental part of the supply chain.
As we can see, logistics and supply chain are different and easily differentiable concepts. Logistics is a function that is found within the supply chain, being integrated into the planning and execution processes. That is why, frequently, the logistics and supply chain tend to overlap and get confused.
What is clear is that logistics is a fundamental part of the supply chain of companies and that having a logistics group capable of providing value to the whole is one of the main challenges for today’s companies, where The search for efficiency in freight transport is key to compete in markets as saturated and volatile as the current ones.