What is the difference between Supply Chain and Logistics ?

What is the difference between Supply Chain and Logistics ?

Supply Chain and Logistics

A supply chain encompasses all activities (operations) needed to convert rawmaterials into final products, from sourcing through component manufacturing and final assembly to distribution to end-markets, and including all necessary materials handling and storage (in short, logistics) activities.

More and more, it also includes the handling of return flows of products and possible re-use of materials and components,in which case we speak of closed loop supply chains. Almost always, these activities

are not executed by only one industry but instead encompass a number of companies and organizations jointly operating in a chain or network, referred to as end-to-end supply chains.

Logistics refers to the transportation and storage of materials, parts and products in a supply chain. Logistics includes inbound and outbound processes to and from warehouses, as well as internal and external materials handling and transport operations. It also includes the execution of services and the transfer of information between the various stages of a supply chain.

Supply chain management encompasses the planning and management of all supply chain operations. Importantly, it also includes the coordination and collaboration with channel partners, which can be "suppliers", "intermediaries", "third party service providers", and "customers".

In essence, supply chain management integrates supply and demand management within and across companies.

Logistics management is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers requirements. 

It typically includes inbound and outbound transportation management, fleet management, warehousing, materials handling, order fulfillment, logistics network design, inventory management, supply/demand planning, and management of third party logistics services providers. 

A proper execution of logistic operations depends on, and has impact on, sourcing and procurement, production planning and scheduling, packaging and assembly, and customer service.

Logistics management is an integrating function, strongly relying on an adequate information infrastructure, and ideally synchronized with other functions including marketing, sales, manufacturing and finance. 

Unfortunately, in many popular magazines and in the eyes of the public, logistics is often still seen as synonymous with transport.