What Is The Difference Between Logistics & Supply Chain Management?

Determining the difference between logistics and supply chain management can prove to be challenging. Over the years, the logistics and supply chain management has been viewed as one and the same. Both terms are used to encompass the process of building a reliable shipping network, storing goods, and distributing those goods. Despite the consensus, there is in fact a difference between the two and both contribute to transporting your goods.

To learn more about logistics and supply chain management solutions, contact the experienced professionals of FreightCost today at (888) FRT-COST and we will be glad to find cost-effective methods on how improved logistics and supply chain management can improve your efficiency and save you money.

What Is Logistics?

Logistics is more appropriately a sub-process of supply chain management. The focus of logistics is to make sure that the goods and products arrive at the correct destination and on time. Logistics also consists of warehousing and distribution, packaging, and more, making it crucial in the role of supply chain management because its other role is to synchronize the supply chain. There are also two forms of logistics, inbound and outbound. Each play different but equally important roles in transporting goods.

What is Supply Chain Management?

Supply Chain Management can be looked at as the bigger picture. It is made possible through multiple parties collaborating to maximize efficiency and to improve value for the customer. These parties that include retailers, suppliers, manufacturers, and wholesalers, working together comprise the supply chain and are responsible for multiple functions in order to ensure everyone involved benefits. Logistics is actually just a smaller part of this larger process. With so many moving pieces, it is imperative to have all of your partners on the same page and working together to ensure each party benefits from the partnership and that the sub-processes are in sync so that your customers receive the most value.

Key Differences

The differences between supply chain management and logistics are that supply chain management is a way to connect a variety of business processes spanning across multiple companies to create a network and gain a competitive advantage. Logistics refers to the movement of goods, products, and services inside and outside of the network. Supply chain management is about gaining a competitive advantage while logistics is the more customer-centric part of supply chain management.

Why Use FreightCost in Chicago?

At FreightCost in Chicago, we have over 40 years of experience developing supply chain management solutions that connect multiple companies in order to create advantages over the competition. Our networks and relationships with companies will help complete your supply chain and optimize your logistics to get your goods or products to their destination. If you need to improve your logistics, we have relationships with multiple carriers that have proven to be reliable and offer truckload or LTL freight transportation.

If you feel like your supply chain management needs improvement or if your logistics network is costing you more than it should, get in contact with the logistics and supply chain management specialists here at FreightCost. Give us a call at (888) FRT-COST today and we can assess your current situation and identify ways to improve your logistics and supply chain management.