What is the difference between supply chain and logistics in the context of physical distribution?

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beateach | Elementary School Teacher | (Level 1) Educator

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The difference between supply chain management and logistics has been evolving over the last few years. Supply chain management deals with control of a product from its inception as raw materials to its delivery to the ultimate client, and everything that happens in-between. It includes the management of materials, parts, and finally the distribution of the finished goods. This includes the suppliers, manufacturers, and delivery modality, and the customers.

Logistics is the part of supply chain management that deals with planning for efficient and effective forward and reverse movement, and storage of goods from the beginning of manufacture to the end delivery point. It is concerned with ultimately meeting the consumer’s needs.

Therefore the difference in supply chain management and logistics it that logistics involves the planning process.

Logistics is that part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from the point-of-origin to the point of- consumption in order to meet customers' requirements.

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