Determining the difference between Logistics and Supply Chain Management can sometimes be tricky, depending on who you ask. Some view them as interchangeable terms, while others view Logistics as a one of the parts that make up Supply Chain Management. Looking at what each compasses will give a clearer picture of what the true differences between the two are.
What is the difference between Logistics and Supply Chain Management?
What is Logistics?
In short, logistics is the detailed process of planning and executing the storing and transporting goods from their point of origin to the desired destination. Logistics consists of picking up, warehousing, distribution, sometimes packaging, delivery and more. The exact tasks and responsibilities involved vary depending on the business and its supply chain partners, but simply put it is the process of transporting goods. Today, it has a crucial role in business and society in general.
What is Supply Chain Management?
Supply Chain Management, on the other hand, can be looked at as more of the bigger picture in a business’s process. It is the entire flow of goods and services, starting from raw materials and moving all the way to delivering the final product to a customer. SCM involves suppliers, manufacturers, wholesalers, logistics and retailers all handling their individual responsibilities to ensure that in the end, customers get a quality product and they get it as soon as possible.
Key Difference between Logistics and SCM
To keep it simple, Logistics is more appropriately a sub-process within Supply Chain Management. Supply Chain Management is a network of partners in which logistics is included alongside manufacturing, retailing, etc. Logistics is primarily focused on the transportation of those goods or materials along the way within the supply chain.
Why Use TKO Logistics?
TKO Logistics uses a top of the line fleet of the latest Cascadia models, providing our drivers with comfort and the tools they need to get the job done. We are committed to safety, integrity, and more, devoting ourselves to our customers to always get it right, or to make it right. We move quickly to serve our customers and employ industry leaders to ensure we deliver and adapt to your changing logistics needs. You can reach us at (630) 592-4744 or by visiting our contact us page.