Supply chain is NOT the same as logistics
Below I have included a comparison between supply chain and logistics:
➡️ Areas
↳ Supply chain: planning + sourcing + manufacturing/ operations + logistics
↳ Logistics: transportation + warehousing
➡️ Focus
↳ Supply chain: build a competitive advantage; strategic focus
↳ Logistics: cost effective deliveries including customer satisfaction, compliance, labor management, asset management of warehouses and transportation
➡️ Role in S&OP
↳ Supply chain: typically leads S&OP
↳ Logistics: part of S&OP and S&OE (Sales and Operations Execution)
➡️ Relationship
↳ Supply chain: Logistics is part of Supply Chain
↳ Logistics: inbound deliveries are upstream supply chain; outbound deliveries are downstream supply chain
➡️ Key Activities
↳ Supply chain: orchestrate, plan, source, order, transform/ make, fulfill, return, per SCOR model (APICS/ ASCM)
↳ Logistics: plan, receive materials, parts, components, products, fulfill orders, deliver to customer, manage returns
➡️ Who
↳ Supply chain: in-house team
↳ Logistics: outsourced in many cases
➡️ Inventory
↳ Supply chain: from sourcing raw materials until product delivery to customer
↳ Logistics: from material receipts at the warehouse until delivery to customer
