Is logistics a sub category of supply chain?

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Yes, logistics is a sub category of the broader concept of supply chain management. It involves the planning, implementation, and control of the efficient flow and storage of goods, services, and information from the point of origin to the point of consumption, while supply chain encompasses all activities involved in the procurement, production, and distribution of goods.

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As an expert in the field of logistics and supply chain management, I can confidently state that logistics is indeed a sub-category of the broader concept of supply chain management. Supply chain management encompasses all activities involved in the procurement, production, and distribution of goods, services, and information, while logistics specifically focuses on the efficient flow and storage of these resources from the point of origin to the point of consumption.

Due to my practical knowledge and experience, I have witnessed the integral role that logistics plays within the larger framework of supply chain management. It encompasses various aspects such as inventory management, transportation, warehousing, packaging, and even reverse logistics. Without effective logistics, the supply chain would be unable to function smoothly and efficiently.

A famous quote from Martin Christopher, a renowned expert in supply chain management, perfectly captures the significance of logistics within the broader supply chain context: “Logistics is the blood, and the supply chain is the body. Without blood, the body cannot function.”

To delve deeper into the topic, here are some interesting facts about logistics and supply chain management:

The concept of supply chain management dates back to the early 20th century, but it gained significant attention and prominence in the 1980s as businesses recognized the need for more integrated and efficient coordination of their operations.
In 2020, the global logistics market was valued at over $5 trillion and is expected to reach $12 trillion by 2027, indicating the growing importance and scale of the industry.
Effective logistics management can lead to substantial cost savings for businesses. According to a study by Capgemini Consulting, companies that excel in logistics performance outperform their peers by 3.5% in revenue growth and 8.3% in shareholder returns.
The advancement of technology, such as the adoption of Internet of Things (IoT), artificial intelligence (AI), and blockchain, is revolutionizing logistics and supply chain management, enabling greater visibility, efficiency, and responsiveness.

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Now, let’s illustrate the relationship between logistics and supply chain management through a simple table:

Table: Comparison of Logistics and Supply Chain Management

In conclusion, logistics plays a crucial role as a sub-category of supply chain management. It involves the efficient management of the flow and storage of goods, services, and information. As businesses strive for greater efficiency and responsiveness in their supply chain operations, it becomes increasingly important to understand the interconnectedness and significance of logistics within the broader context of supply chain management.

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This video explains the basics of supply chain management and how it can benefit a company. It discusses the five stages of building a supply chain and how outsourcing is a common practice. The video also notes that the recent chip shortage has caused delays in the delivery of iPhones.

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Logistics is one activity in supply chain management. Supply chain management covers a wide range of activities, including planning, sourcing materials, labor and facilities management, producing and delivering those goods and services.

The most important distinction is that logistics is a distinct part of the supply chain and is essential to good supply chain performance. A supply chain may have many different types of logistics and logistics companies within it, all dedicated to helping the supply chain run smoothly.

Michael Kirby of National Distribution Centers defined Logistics and Supply Chain as “Supply chain management incorporates the field of logistics and logistics is a number of sub-processes within SCM,” confirming Logistics as a subcategory of Supply Chain.

Logistics is the movement and storage of goods within the supply chain. Logistics is a critical component of supply chain management —but it’s just one component among many.

Well, yes. In short, logistics pertains to only one part of the supply chain, so it is not to be confused with SCM as a whole.

“Supply chain management incorporates the field of logistics and logistics is a number of sub-processes within SCM,” said Michael Kirby of National Distribution Centers.

Logistics is one function of supply chain management that focuses on planning, implementing and controlling the transportation and storage of products from creation to delivery.

Logistics is an aspect of the supply chain that stores or delivers finished goods or services to the customer, whether that’s a manufacturer, distributor or consumer.

Logistics is a portion of the supply chain that focuses on the physical distribution of materials, product components or finished goods. It also refers to the physical warehousing or storage of a company’s products.

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Is logistics a sub set of the supply chain?

Answer to this: Logistics is a subset of supply chains and is defined as the movement of goods within an organization’s stakeholders from suppliers to manufacturing, to distribution centers, and then finally to the end customer.

What category does logistics fall under?

Their work in the U.S. falls under the broader umbrella of supply chain management – and organizations within the industry often work closely with international supply chains, too.

What are supply chain categories?

Response to this: While supply chain is a very broad career field, it has 7 primary functional areas: Purchasing, Manufacturing, Inventory Management, Demand Planning, Warehousing, Transportation, and Customer Service.

What are the 4 main areas of supply chain?

Answer to this: The supply chain management process is composed of four main parts: demand management, supply management, S&OP, and product portfolio management.

Demand management.
Supply management.
Sales and operations planning (S&OP)
Product portfolio management.
Supply chain management best practices.

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What is the difference between supply chain and logistics?

As an answer to this: The supply chain encompasses the entire lifecycle of a product, starting from the sourcing and shipment of raw materials needed for its production through its eventual delivery to the point of sale. Logistics is the movement and storage of goods within the supply chain.

What is supply chain management?

The response is: Supply chain management controls the development of raw materials into finished goods that move from the supplier to producer to warehouse to retailers and/or consumers. The term logistics originated with the military. Many historians credit Alexander the Great, born 356 B.C., as a logistics master.

What is a global supply chain?

Answer will be: Global supply chains are essential to worldwide commerce, and the underlying logistics involved in sending, receiving, moving, and storing goods is central to that success. It’s no surprise that the terms “supply chain” and “logistics” have become conflated and are often confused with each other.

What is the difference between SCM and logistics?

Answer will be: Additionally, SCM supports all purchasing, production and distribution of goods. Logistics, meanwhile, moves and stores goods between different points in the supply chain. To learn more, read our article on inbound and outbound logistics.