In the modern world, the issue of end-to-end supply chain and logistics is one of great importance and much confusion at the best of times. While they’re necessary factors for ensuring the global market continues to spin uninterrupted, there’s often a disparity of detail when it comes to the individual responsibilities and notable aspects of each determinant.
Organisations have the tendency to lump supply chain and logistics into the same designated utility and definition when discussing the minute details of product storage, goods transportation, storage, organisation, and delivery.
In an effort to break down the fundamental differences and symbiotic relationship between supply chain and logistics responsibilities, the following is written to allow an easily understood framework of the roles each aspect play in the grand scheme, and the undeniable reliance one has for the other.
Defining The Differences Of Supply Chain & Logistics
When looking at the broader spectrum of inventory management, supply chain and logistics come into the fold quite noticeably. The former being the common term that encapsulates all steps of proper inventory management, SCM is more or less the flow and cohesive workings of goods transportation, cultivation, packaging and distribution from manufacturers to the intended consumer.
The latter aspect of supply chain and logistics reflects the specified organisation and smooth transition and transportation of goods between organisations within a fully realised SCM system.
In short, SCM refers to the end-to-end consumer experience and the latter is one of the all-important cogs in ensuring that the former is possible.
One Without The Other
Now we understand the basic fundamentals of supply chain and logistics, it’s time to delve a little deeper into the nature of their relationship. There are a lot of terms being bandied around and it can be understandably confusing to separate their meanings from one another effectively on these terms.
Let’s use an example to illustrate the difference and all-important relationship between the two. An agricultural supplier such as a farmer is selling their products, eggs and milk, to consumers around the country.
In order for this business to be feasible an SCM system would have to be implemented to some degree, the manufacturer needs to be able to effectively collect, package, store and distribute the products in a timely and effective manner to customers. Being unable to do this would result in a loss of revenue and customers.
For the steps to be followed in a concise and effective manner, proper storage and transportation protocol would have to be involved, the eggs and milk products have to be organised, transported, and delegated accordingly for an effective business to continue.
Supply chain and logistics come into the fray with the former being involved with the big picture for the eggs and milk, and the latter being the devil in the details of how best to approach the intricate necessities of transporting and effectively storing the eggs and milk for distribution to customers.
There cannot be one without the other in many respects, as the transportation and logical ordering of inventory transportation is essential for maintaining a long-term strategy and business acumen.
Supply chain and logistics have a deep seeded need to be cohesive with one another and while it may look simple from the outset, poor management on either end of this equation could spell irreparable trouble for a business.
The Big Picture
As we continue onward in the global market, as well as maintain a strong local and domestic marketplace of inventory management and commerce – the inherent requirements and necessities of considered supply chain and logistics cannot be overstated.
BCR have experts in all steps of the distribution process and are proud to be a part of the innerworkings and big picture approaches to supply chain and logistics.