What is the Difference and Connection Between Supply Chain and Logistics?

by | 27 Aug 2021 | Education

1. Introduction of supply chain and logistics

The application of the supply chain is very extensive and in-depth in the production and operation of the entire society, covering almost all industries and enterprises. At the same time, with the development of modern information technology and the Internet, the development of the transportation and logistics industries has also achieved a qualitative leap in recent years.

However, as far as the two concepts of supply chain and logistics are concerned, whether it is the logistics industry or the manufacturing industry that implements supply chain management quite extensively and profoundly, the understanding of supply chain and logistics is relatively vague, or there are misunderstandings.

2. The difference and connection between supply chain and logistics

First of all, we must make it clear that supply chain and logistics are two different concepts. Logistics is a process of goods circulation from the beginning of supply through various intermediate links, that is, running and flowing in the supply chain, and finally reaching the hands of consumers. It aims to meet the needs of customers, and at the lowest cost, through the transportation, storage, and distribution of circulation and transportation channels, and finally realize the commodity connection between merchants and consumers.

The supply chain is through procurement, processing, manufacturing, inventory, sales, logistics and other links to realize the transformation of raw materials into finished products through processing or reprocessing, and then into consumer goods, realizing value creation. It is a dynamic management model that uniformly manages the processes and participants in the entire process.

Through the clarification of the concept, we can know the relationship between supply chain and logistics. A link in supply chain and logistics, a supply chain network chain structure often requires multiple supplier logistics systems to provide global logistics services. Logistics solutions are generally determined by the supply chain, and supply chain management provides enterprises with modern supply chain solutions and is implemented by the enterprises themselves.

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