Introduction
Business relies heavily on moving goods and materials, where supply chain and logistics play a crucial role. The supply chain concept includes all processes, manufacturing, organizations, and other aspects and stakeholders involved in product delivery (Kay, 2001). Logistics is included in the supply chain as a part of its implementation, which concentrates on the physical movement of products, their warehouse, and inventory (Kay, 2001; Neureuther, 2012).
Similarities Between the Supply Chain and Logistics Concepts
Their similarity is that both concepts are related to product flows, and their goal is effective flow control through optimization and streamlining processes. For example, transport in logistics determines when and how organizations receive raw materials or products for further movement along the chain to the end user. Despite some similarities, the supply chain and logistics differences are more critical.
Differences Between the Supply Chain and Logistics Concepts
Differences between logistics and supply chain concepts are crucial to understanding them accurately. Logistics has a smaller scope as it focuses on physical movement, while the supply chain implies measures on manufacturing, even marketing, and other aspects (Kay, 2001). Widdifield (2020) offers an analogy of the human body: the supply chain is all organs, and their work maintains life, and logistics is the circulatory and nervous systems, which provide physical and information flows.
Given the difference in scale, the supply chain is also more complex and focused on long-term tasks, including more diverse actions and planning through all links from production to sale to ensure a continuous process. Logistics, in turn, focuses on short-term and more repetitive operations. For example, in the production of mobile phones, the chain covers processes from sourcing raw materials for the phone components to coordinating with suppliers and distributors. In this case, logistics manages the physical movement of the phones from the factory to distribution centers.
Conclusion
Thus, while the supply chain and logistics are both related to the movement of goods, they have significant differences. The supply chain covers more processes and activities in producing and distributing goods. Logistics is included in the supply chain and focuses on the physical movement and storage of goods.
References
Kay, R. (2001). Supply chain management. Computerworld. Web.
Neureuther, B. D. (2012). Excellence in supply chain and logistics management. Journal of Marketing Channels, 19(2), 99-100. Web.
Widdifield, D. (2020). Logistics vs. supply chain management: What’s the difference? The University of Texas at Dallas. Web.