Supply Chain and Logistics are two vastly different processes, but it creates something powerful when put together. If you are a business owner looking to understand how to get your product across suppliers and customers, it is incredibly important to know its process. Getting from point A to point B may seem like an easy journey. However, it comes with a lot of steps in between to be made possible. For those just beginning in the industry, we are going to give you the lowdown on the major differences between a supply chain and logistics.
What Are Supply Chain and Logistics?
In the supply chain and logistics process, the supply chain is the large network that includes logistics as one of the crucial steps to turning raw goods into a product that sells. It is a system that connects a business between its customers, manufacturers, and suppliers, getting your product from point A to point B. The supply chain is a network that involves people, technology, action, resources, and data. They coordinate and oversee the strategy and planning for the delivery of information and logistics to ensure the product is in prime condition for all stakeholders, turning the raw material into a commercial product.
On the other hand, logistics focuses more on the sales, production, transportation of goods, and customer service. It is an essential step in the supply chain process that manages the execution, plans, reporting, and overall transportation of goods with the company’s stakeholders. The goal of logistics has the same endpoint but attending more to promising the company a low expenditure and a high-quality service.
What Are The Similarities And Differences?
Different Rules, Same End Goal
A great analogy to think about when it comes the differentiating between a supply chain and logistics is to think of a game of tennis. The court would be the supply chain. Everything takes place on the court, but the game is the most important way to get the opponents to score points. The court signifies the communication and physical acts of the sport. This includes the money that is put into building the court so that the audience has a great time at the game. The communication network, which is replay videos or pictures, is all the information and data recorded before, during, and after the supply chain process. This allows the audience, which in this case is the stakeholders, to become invested in the game.
The strategy and act of the game, which is tossing the ball, is the logistics. The logistics are the movement of the ball going from one side to the other. While they are doing different things, they work together to achieve the same goal: to sell a product.
In short, the supply chain is the management of storing goods, whereas logistics is the management of transporting goods. Together, they want to make the winning score!
But Together They Create Magic
While logistics and supply chains are vastly different, they improve productivity levels when combined. The supply chain focuses on competitive advantage, whereas logistics work on building customer satisfaction. This allows the movement of goods to be more efficient and faster, ensuring the customer or supplier receives them on time and in good condition. This is important when it comes to mass production, keeping each step of the process organized and thorough in leading to a positive end result. Together, they are an unstoppable force helping your company stand out from its competitors.
At BCR, we are the leading third-party logistics provider making sure your products get to the front door safely and in the best condition possible.