4 minutes to read
Do you have difficulty understanding the difference between the terms Integrated Logistics and Supply Chain?
That’s ok! Sometimes they get confused, but actually the idea of the two definitions is to cooperate with each other. You still don’t understand, do you?
Then, follow this text and we will explain what each of these areas is about and you will discover how they can cooperate with companies.
Be sure to read this content!
Getting to know better what integrated logistics and supply chain are
The first thing you need to understand is that both integrated logistics and supply chain are important, however the two are interdependent.
That is, one depends on the other for good performance.
But here is a simple explanation of each area:
Integrated Logistics involves several departments of an organization that work in sync so that distribution operations gain quality and agility, while the Supply Chain involves logistics, but goes beyond distribution and the organization itself.
It manages operations between other organizations ranging from resource acquisition, production to delivery to the end customer. Now that you know what these two terms are about, let’s understand what the differences are.
What are the main differences between integrated logistics and supply chain?
Integrated logistics would be responsible for intra-company integration, while supply chain would be inter-company management, among other organizations.
Regarding the differences between integrated logistics and supply chain, we can say that the first seeks integration within organizations.
This connection between departments is intended to make operations in a more flexible way, thus offering a quick response to demands.
The supply chain has a more strategic role. It works in partnership with suppliers, manufacturers and others to increase competitive advantage.
See what advantages of integrated logistics synchronized with the supply chain are
There is no doubt that integrated logistics are capable of significantly increasing the performance of the supply chain and making processes in a more flexible way.
But let’s get to know in detail some of the benefits of this union:
. An integrated logistics in the supply chain increases knowledge between partners and thus gains more possibilities for launching new products and services;
. The exchange of information increases trust throughout the chain, as it creates an environment with less uncertainty;
. It increases efficiency in activities ranging from planning, manufacturing to distribution;
. The supply chain becomes more effective in managing risk;
. It increases commitment between partners;
. It improves customer satisfaction regarding the quality of services and products.
After knowing all these advantages, it is clear that it is worth investing in the synchronization between integrated logistics and the supply chain, because this is the way to a well-coordinated supply chain and a way to stimulate joint benefits, and particularly for companies that want to achieve greater chain productivity and innovation capacity.