The difference between logistic and supply chain06/10/2015
Logistic and supply chain are two terms often used improperly, a confusion of meaning that came from the fact that many people consider logistic a subcategory of supply chain management. In true, the main difference between supply chain and logistics is that logistic is a specialized part of the entire supply chain process.
What is logistic management
Generally, logistics includes transportation and storage service. Here we found services such as inbound and outbound freght, reverse shipping, storage and communications during transit. Also, logistics deals with coordination and other activities related to the transportation of foods and beverage from a point to another one. Sometimes, logistic management touch lightly manufacturing and packaging, including the price negotiation for transport, third-party integration and procurement, technology, communications and customer service.
What is supply chain system
Supply chain management includes all process about sourcing and procurement of foods and beverages. Usually, supply chain manages the B2B links to ultimate the sale with consumers. So, supply chain consists also in finding and obtaining the goods to sell, the negotiation of the price, finding manufacturer, storage and package. Distribution, cost allocation and control are all parts of supply chain management.
The details and precise definitions for both the process of supply chain and logistics will vary from company to company. Sometimes, if it is necessary many of the duties and responsibilities of logistics management will cross over into supply chain management, and vice versa. That’s why many times we can make confusion between this two sectors.
In this time, in an evolving economic system, it’s important respond to needs with innovative and complete logistic and supply chain management. An integrated management system allows to satisfy the new market requests, and of course, to guarantee the value for money for the final client.