In the business context, there are several concepts that are often confused, and their meanings overlap. Of these two terms, one is logistics, and the other is supplying chain. They are vital in the management of business operations, in equal measure, though they are not the same. In the course of this article, an explanation of what logistics and supply chain entail and their differentiation will be provided. We will also look at how the two enhance each other in order to properly run any business.

Logistics is a method by which the operations of procurement, transportation, warehousing, and other moving activities involved in the flow of materials, goods, and related information from the point of origin to the customer interface are systematically planned, executed, and monitored. 

Logistics is one of the most critical functions in any business because it is responsible for delivering the correct goods to the right consumers at the appropriate time. It also reduces cost since it determines the best transport network to use and the storage space best utilized. It is also preventing product damage or even theft in the process of being transported from one place of location to another.

1. Inbound logistics: This is the logistics of getting raw materials to the production platform from the suppliers. Some of the responsibilities are as follows: supplier contact, order of supplies, and supply logistics coordination with acting departments, purchasing or production.

2. Outbound logistics: Outbound logistics means the act of transferring the finished products from producer to stockist or end consumers. Casting entails the Inventory control, packaging, and distribution of merchandise, as well as communication with the distribution facilities and transportation companies.

3. Reverse logistics: It means the flow of products from the consumer back to the seller or producer. It may be concerning a product return, repair, recycling, or disposal. It is especially beneficial in running an organization effectively to meet customer’s needs and minimize costs incurred in the end.

Supply chain generally refers to a system comprising people, companies, resources, processes, and technology that participates actively in a production and distribution process of goods and services from the time the initial supplies are bought from the supplier, then to the manufacturer, and to an ultimate consumer.

The effective management of the cost and delivery process is enabled by supply chain management to ensure that the organization maintains its ability to stay competitive. It gives an end-to-end view of the products, from sourcing raw materials to logistics and managing customer relationships.

1. Supply chain planning: It covers decisions that relate to acquiring goods and services, making them, and getting them to the customer. Some of them are establishing supply chain key performance indicators (KPIs) and supply chain metrics.

2. Procurement: It is the act of procuring or purchasing assets, wares, and services from outside suppliers. It includes contract formation and evaluation, supplier decision-making, and supplier relationship management.

3. Manufacturing: It is the process through which the end products are realized directly from the inputs. Supervising production planning, quality assurance, and production timetables involves this.

4. Logistics: As mentioned before, logistics comprises transport and distribution, storing and managing of stocks as well.

5. Distribution: The term applies to the actual transfer of goods, mainly finished products, from the manufacturer to distribution centers or the final consumers. It refers to managing the logistics networks that prioritize the delivery schedules and the firm’s interaction with the carriers.

6. Customer service: It’s about responding to orders and customer’s questions and complaints about order processes, returns, or products.

Logistics is, therefore, a subset of the supply chain, though they are both interrelated but not interchangeable. 

1. Scope: Logistics is a section of the supply chain, especially with regard to the transportation of goods from one place to another. However, the supply chain consists of a more considerable array of activities such as purchasing and acquiring, production and making, and after-sale services.

2. Focus: Logistics is related to the movements of raw materials, products, and other requirements in an integrative manner, while the supply chain is connected with the acquisition, procurement, production, and distribution of products and services.

3. Objective: The primary objectives of logistics are to cut down costs and to enhance effectiveness in getting and putting in place goods and services. The goal of SCM is to identify and control all purchasing variables from procurement through delivery cycle.

1. Common goals: Logistics and supply chain have similar goals of improving capability, driving down costs, and improving customer satisfaction.

2. Interconnectedness: Logistics and supply chain are inter-dependent since one cannot operate without the other. Both collaborate for easy and efficient transport of products and input factors.

3. Technology: Logistics and supply chain are almost similar with both being driven by use of technology in order to automate processes to help in the display of real time data.

Basically, logistics and supply chain are two different but they can’t exist alone. Supply chain management is a definite field, which can be divided into several branches, one of which is logistics, that deals with transportation of the goods and materials. While logistics refers only to the sourcing process –the process by which purchasing managers select their suppliers and order their goods and services–, supply chain management includes other closely related processes, such as sourcing and procurement, order management, supplier management, warehousing and distribution, transportation, and others.