Supply Chain vs. Logistics: The Difference
Although often confused, logistics and supply chain management are not the same. Logistics deals with transporting and storing goods, while SCM encompasses the entire journey from raw material acquisition to final product delivery. SCM is broader, integrating procurement, production, inventory management, and customer feedback. Logistics is just one part of this ecosystem. For example, a company may have an efficient logistics network, but without effective SCM, it risks supply disruptions, poor vendor management, or high costs. In short, logistics is about moving goods, while SCM is about optimizing the entire system. Understanding this difference helps businesses create smarter, holistic strategies.