11 / Nov

The difference between logistics and supply chains

What is the difference between logistics and supply chains?

In the modern era, modern concepts have increased in the business world, and the business itself has acquired a different character than it was previously. Organizations no longer operate as an independent entity, but rather become part of different chains that ultimately aim to achieve the goals of customers, and the term supply chains has become one of Terminology circulating in the modern business world, especially with the technical and technological development that has greatly affected all sectors of life in societies.
The word supply chains with logistics is always mentioned in parallel and overlapping, but there is a difference between the two terms, so it is necessary to clarify the difference between them as each term has characteristics that differ from the other, but the main difference between the two terms lies in that logistics is a part Dedicated from supply chains.
Flow logistics services are mainly based on transportation, warehousing and handling of shipments such as outgoing, incoming and reverse logistics and other types of logistics services, as depending on the needs of customers or companies, the logistics management may include manufacturing, packaging, negotiation and packaging prices or contracting with a third party and customer service Dealing with technology and procurement.
As for the supply chain, it is the largest part, which includes logistics services only as part of it, supply chains form and manage business between companies, which consider logistics (which means in short shipping from one place to another), one of the functions within a supply chain, or a number of chains Supply, in a more precise sense, logistics can be thought of as one part of a complete supply chain process. (1)
The differences between logistics and supply chains can be summarized in that the main goal of logistics services is total customer satisfaction, while the main goal of supply chains is to obtain a major competitive advantage, in addition to that logistics usually involve only one organization to achieve its goals, while chain management Supply: Several organizations participate in it to achieve its goal, and the term supply chains is considered one of the relatively recent terms in front of the term logistics in the world of trade and business. (2)
Although the two terms differ from each other, they are complementary, for the quality and efficiency of supply chains necessarily mean the quality and efficiency of logistics services, which focus on transporting a product or material in the appropriate way so that it reaches the destination in the required time, while the supply chain is more comprehensive, as it includes Quality, purchasing, inventory control, planning, production and design, in addition to logistics and distribution.
Therefore, supply chains in the modern era are one of the most important strategies in which the joint operations of enterprises that have a competitive advantage are managed. For all establishments, whether small, large or medium, that will provide tangible benefits to society, consumers and customers in the future. (3)