The difference between logistics and supply chain
One of the always hot topics in the logistics industry is distinguishing between logistics and supply chain. However, an important point to note is that if we do not correctly identify this difference, it may cause many problems in logistics management. In this article, we discussed the differences between logistics and supply chain. Stay with us.
Definition of Logistics
Definition of Logistics (Logistics), which is translated to Persian as "Amadgari," refers to the management of transferring a product from the place of production to the place of consumption by the customer. This process consists of three main stages:
- Planning
- Transportation
- Supervision
Definition of Supply Chain
Supply Chain in a simple and concise definition, is a network of activities aimed at:
- Product development
- Marketing
- Procurement of materials and primary needs
- Management of shipping and logistics
- Utilizing modern methods to achieve organizational goals
Difference Between Logistics and Supply Chain
According to the two definitions above, it is clear that logistics is only one of the stages of the supply chain, and equating these two subjects is a significant and irreparable mistake.
In fact, supply chain management encompasses logistics management, including traditional logistics methods and modern methods, product development, marketing, and customer services.
Conclusion
Paying attention to the differences between logistics and supply chain can lead to the formation of a clearer logistics program and more efficient logistics management, which ultimately results in increased transportation efficiency and reduced costs. The goals and path of logistics management in the supply chain are highly diverse. The traditional approach cannot respond to this level of diversity. To advance goals in the supply chain and, most importantly, customer satisfaction, modern logistics management plays a vital role.
