August 27, 2018

We’re in the process of updating our website, so I’ve been speaking with a website strategist over the last few weeks. Being somewhat unfamiliar with the supply chain sector, and knowing that SCL Search specializes in supply chain and logistics recruitment, he asked me to explain the difference between supply chain and logistics.

I told him it often depends who you ask, as the terms are sometimes used interchangeably. However they are not the same thing. Supply chain management is a broader concept, encompassing a range of processes. And logistics is a part of the supply chain.

Supply chain is the path or network that goods follow, from raw materials through manufacturing and distribution to eventually reach the end user. Supply chain management includes supply chain strategy, production planning, procurement, product lifecycle management, inventory management. And it also includes logistics.

Logistics is the storage and movement of goods. It includes warehousing and distribution, as well as inbound and outbound transportation.

Do you agree with this explanation? Too simplistic? Please add your comments below.

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