Discover the differences between logistics and supply chain right now

3 minutes to read

Controlling the company’s internal processes is essential to achieve better management for your business and obtain better results, whether in internal routines or to improve the relationship with the customer.

Two points deserve attention on the part of managers: the supply chain and logistics. Understand what these two concepts are and how they impact the day to day of your business, in order to obtain better results.

However, are they the same? Not really. Discover the main differences below and answer your questions. Have a good reading!

What is a supply chain?

The Supply Chain Management concerns a structure that covers the planning and management of functions that are interconnected with methods and operating systems, directly or indirectly related to the product.

It includes functions such as purchases, deposits, inventories, among others. In view of this, inventory, purchases of inputs, among others, are closely linked.

What are the differences between logistics and supply chain?

Although they are related to storage and supply stocks, logistics and supply chain are not the same. For this, it is important to know the differences between these two concepts, as we will show below.

Logistics refers to the actions of planning, implementing and adopting practices that range from the process of storing the items that arrive at your company to delivery to the end customer.

Essentially, thus, we can say that logistics is inserted within the supply chain, in order to complement its actions and generate better results. In addition, we can enumerate other essential differences, such as:

. Logistics has a more technical view, while the supply chain is more strategic;

. It usually involves only internal collaborators, changing in cases where the logistics process is outsourced. Meanwhile, the supply chain works with both suppliers, manufacturers and other external partners;

. Logistics aims to reduce costs, to implement more efficient distribution models and to control distribution centers. The supply chain, on the other hand, aims to work at competitive advantages, stimulate innovation and manage to reduce costs at all stages of production, not just at the end of it.

How to do a good supply chain management?

A few tips can help you considerably manage your supply chain well. Let’s look at the main ones below.

. Forecast demands;

. Integrate the company’s teams;

. Observe the demands in the supply chain;

. Share the supply chain with your suppliers;

. Integrate the company’s teams;

. Count on a management technology that allows a better control of the supply chain.

How to unite logistics and supply chain?

Logistics and the supply chain, when worked together, can increase the results in this sector for your business. For this, it is essential to have integrated logistics. Through it, it is possible to achieve greater integration in the organization, through the adoption of technologies aimed at this purpose.

With this, it becomes possible to achieve a better management of the inputs used in your company, observe the movement of materials internally and perform a better physical distribution of your product. It is interesting, isn’t it?

The adoption of integrated logistics and the application of technological solutions allows your business to enter the era of Supply Chain 4.0 and modernize your business. Then read our article and understand how this concept works.

ABOUT THE BLOG

The VMI Portal is a portal of news and information on systems of collaboration between suppliers and customers, which is growing continuously. The idea is to promote and disseminate the concepts of Supply Chain Management (SCM) and Vendor Managed Inventory (VMI), among other topics.

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