Supply Chain vs Logistics

March 6, 2010 at 11:48 pm (General) (, , , )

We live in a modern commerce century  with no borders and the world of business is accepted that is mandatory to have a proper way of organizing the production process plus the distribution and storage of these goods. The globalization makes new business opportunities  and this is why logistics centers are everywhere in our days. But let´s make clear the different parts related of the global trade.

The term Supply Chain is a summary of many parts where needed to achieve the production, promotion and adoption of a product by the consumer.  These parts may be the plant, its suppliers, retail etc.

The term Logistics described those procedures required to store, promote a product at the right time, to protect their stock. As can be seen logistics is a part of a Supply Chain. Logistics has many activities, some of these:

  • Procurement
  • Packaging
  • Reverse logistics
  • Transportation
  • Warehousing and storage
  • Inventory management

More than 90% of world trade is carried by sea. Over the past 40 years has dominated as a transfer of huge quantities at low-cost. Such a ship can carry up to about 11,000 boxes. These ships are one of the major part of the global supply chain.

Leaders win through logistics. Vision, sure. Strategy, yes. But when you go to war, you need to have both toilet paper and bullets at the right place at the right time. In other words, you must win through superior logistics.

Tom Peters-Rule #3: Leadership Is Confusing As Hell, Fast Company, March 2001

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1 Comment

  1. supply chain said,

    Logistics and scm are the most confusing term. Thank you for sharing clear definition.

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