It usually falls into the mistake of putting logistics and the supply chain in the same bag, as two similar concepts, but the truth is that they are different. Even so one depends on the other, below we explain the reasons for the difference.
What does logistics consist of?
Logistics consists of planning, executing and controlling the products we deliver to customers in the correct quantity, quality and time. Logistics usually includes processes such as transportation, fleet management, warehousing, order planning, product inventories or supply and demand forecasting, among others. In its purpose, it delivers the products from the production plant to the final customer.
What profiles work within logistics?
A logistics manager oversees all product management activities, from the time it leaves the factory to its delivery to suppliers and customers. He leads the rest of the colleagues in the logistics team and implements improvements in the development and creation processes of the plant where he works.
What is the supply chain?
The supply chain is the one that controls the entire workflow in product management, from storage, distribution, to final contact with suppliers and customers. Logistics is therefore one more component within the supply chain.
What profiles are we in the supply chain?
The Supply Chain Manager is a highly demanded profile in the supply chain. It is responsible for obtaining raw materials at a good cost, ensuring that they meet customer demands, and continuously evaluating the process for improvement. He is also in charge of coordinating all logistics and its managers.
The following Supply Chain Management webinar: Tearing Down Logistics Management, taught by Juan Luis de los Ríos Sánchez, will help you introduce yourself to the concepts of logistics and supply chain.
What are the differences then?
Services
Logistics seeks to offer the best service at the lowest cost, to deliver quality products to customers. In the supply chain they are already in charge of finding quality raw materials at a good price, so that costs are not high.
Organization
Logistics has to be organized in order to distribute products in the shortest possible time. The supply chain controls the time of each of the plant's processes so that logistics does not fail.
Delivery
Logistics deliver the product on time; the supply chain seeks to improve this time and that of other activities.
Optimization
Logistics reinvents itself with each new merchandise distribution method; the supply chain manager tries to implement new techniques so that the supply chain is never obsolete.
If you still have doubts, here is an infographic that explains the main points of difference between the supply chain and logistics that will help you understand them better:
Logistics and Supply Chain: Main differences (Source: iebschool)
At the end of the day, logistics as a supply chain, we must bear in mind that the distribution and delivery of products must be carried out in the most efficient way possible. Only in this way will we achieve improvements for the development of the company.
