The flow of commodities from their origin to their destination is the focus of supply chain and logistics. To meet demand, both require the coordination of supply, personnel, and warehouses.
The flow of goods and services is at the heart of both sectors’ actions, as is the purpose of distinguishing their organization from the competition. Both strive to move, store and deliver commodities as efficiently as feasible. The supply chain is the form that logistics takes.
Definition of the Supply chain
The supply chain is the mechanism that produces goods from raw materials and distributes them to customers. Its function also includes its advancement, such as the development of new technologies and tactics.
Visibility is critical in the supply chain since it identifies problems and allows for rapid actions. It also allows you to track the goods as they travel. Transparency improves your company’s oversight and increases consumer loyalty.
SC encompasses and coordinates a wide range of industries. The link between constituent pieces might be both horizontal and vertical. Manufacturers and retailers are examples of the former, while partner firms are examples of the latter.
Talking about logistics
Logistics encompasses both planning and implementation. It coordinates infrastructure, people, equipment, and resources to ensure that products move smoothly.
Logistics processes include warehouse and fleet preparation, demand management, and material handling. The interconnectedness of various nodes in the supply chain is also important.
Where do logistics and supply chains differ?
Despite its importance, logistics is merely one of the many pillars that make up the supply chain. The supply chain determines how items are planned, sourced, and delivered. While logistics focuses on delivering the right things to the right location, at the right time, and in the right manner.
The supply chain optimizes operations and produces competitive advantages, whereas logistics focuses on meeting the needs and expectations of customers. The first is about strategy, and the second is about efficiency.
The term logistics was coined by ancient armies. According to historians, Alexander the Great was one of the first masters of logistics.
The supply chain, on the other hand, began in the twentieth century. During an interview in 1982, British logistician Keith Oliver is thought to have been the first to introduce the phrase supply chain in public.
Turbine your supply chain and logistics
To improve the effectiveness of your logistics and cement your supply chain strategy, you must have complete awareness into the process. Aside from that, maintaining transparency and having solid projections at your disposal is critical.
The Grydd operating system meets all of these requirements and more. Get a free demo to see the future of supply chain and logistics.