Have you ever stopped to think about the real concepts of Logistics and Supply Chain? These concepts are often used interchangeably and our Frex Logistics team from now on will help you to better understand these concepts.
We’ll break everything down and explain the key differences between logistics and the supply chain.
Confusion between the terms Logistics and Supply Chain is common.
Mainly, in which points each of them acts. It is important to remember that all stages of any product, from production, inventory, and delivery to the final consumer, can vary according to each company.
Basically, Supply Chain is responsible for the methods and operating systems linked to the product, directly or indirectly. For example, it fulfills the tasks of purchases, warehouses, inventories – from production to customer satisfaction surveys.
Supply chain management is a function that oversees and directs the manufacture, transportation, and delivery of goods and services between their origin and their final destination.
Logistics, on the other hand, is a step within the supply chain process. It is related to the physical movement of the company’s product to the customer, concerned with the delivery time.
Once goods have reached their destination, logistics providers will store them in warehouses or other facilities. They will keep goods until they are needed further down the supply chain, whether that’s another supply chain organization or for delivery to an end customer.
For these reasons they are connected and dependent operations.
Despite the differences mentioned above, both concepts have a lot in common. That’s because Logistics is still a part of the Supply Chain. After all, both manage the products until they reach the market.
In this way, it is possible to understand that Logistics and Supply Chain work together, one being directly dependent on the other. In the absence of good logistical work, therefore, the entire supply chain is hampered.
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