The differences and connections between logistics and supply chain

The difference between logistics and supply chain

1. Physical flow

The concept of logistics emphasizes that the key point of logistics is the "physical flow process", while supply chain The concept emphasizes the network chain or network structure formed by suppliers, manufacturers, distributors, retailers, and end users. The essence of the definition of supply chain is obviously the supply and demand relationship between upstream and downstream, and the division of labor and cooperation in production, distribution, retail and other functions.

1. The formation and development of the logistics concept are closely related to the continuous progress of marketing, social production, and enterprise management.

2. Logistics emphasizes the core of "physical flow" in both the connotation of Physical Distribution and Logistics.

3. Logistics concepts and logistics practices begin with military logistics, and "the term logistics is not limited to the commercial or military fields. Logistics management is applicable to both public and private enterprise activities."

4. The functions of logistics mainly consist of transportation, storage, loading and unloading, packaging and information processing.

2. Network structure

The national standard logistics terminology defines the concept of supply chain as: "In the production and circulation process, the upstream and downstream activities involving the provision of products or services to end users The network structure formed by downstream enterprises."

1. Every node in the supply chain is an essential participant in the supply chain. From the perspective of scope, the supply chain takes into account every party that has an impact on costs and plays a role in the process of products meeting customer needs: from suppliers, manufacturers, distributors, retailers to end users. There is a relationship between supply and demand coordination and logistics synchronization between node enterprises in the supply chain.

2. The supply chain is a network chain structure integrated by several supply chains. An enterprise can be a member of one supply chain and a member of another supply chain at the same time. Numerous supply chains form a cross-network structure. Supply chains are often composed of multiple, multi-type, or even multinational enterprises.

3. The supply chain is a logistics chain, information chain, capital chain, and value-added chain. Therefore, logistics and supply chain are two different concepts, which are very different in terms of definition and specific operation.

On the surface, logistics is only a component of the supply chain, but if we look at its operational characteristics, the supply chain is more concerned with the transfer of commodity ownership, that is, the rules of value flow, capital flow and information flow. , while logistics focuses more on the spatial displacement of objects.

3. The relationship between logistics and supply chain

1. Generally understood, supply chain includes logistics, and logistics is part of the supply chain. From the production of raw materials at the source to the sale of products to final customers, the entire chain is called a supply chain.

2. For example, A produces raw materials, which are transported by transportation company B to C. C is processed into semi-finished products, and then transported by transportation company D to E. E is processed into finished products and transported by transportation company F to the final customer. From A to F is a relatively complete supply chain, and from A to C can be understood as a sub-supply chain. Transportation companies are generally regarded as logistics companies, and warehouses are also generally regarded as logistics companies. In other words, logistics generally refers to transportation warehouses, etc., and does not include production links.

3. The supply chain refers to the raw material suppliers, manufacturers, distributors, retailers and other involved in product production and circulation around the core enterprise through the control of information flow, logistics and capital flow. A functional network chain structure model that connects the final consumer together. There is generally a core enterprise in the chain. Driven by demand information, node enterprises realize the continuous value-added of the entire supply chain through functional division of labor and cooperation in the supply chain, using logistics, information flow and capital flow as media.

4. The supply chain is a dynamic system, including the continuous flow of information, logistics and capital between different links. Logistics is only one component of the supply chain. The supply chain refers to a functional network surrounding the core enterprise that connects raw material suppliers, manufacturers, distributors, retailers and final consumers involved in product production and circulation through the control of information flow, logistics, and capital flow. Chain structure pattern.

There is generally a core enterprise in the chain. Driven by demand information, node enterprises realize the continuous development of the entire supply chain through the functional division and cooperation of the supply chain, using logistics, information flow and capital flow as the media. Value-added

5. The supply chain is a dynamic system, including the continuous flow of information, logistics and capital flows between different links. Logistics is only a component of the supply chain.

Extended information:

Logistics management refers to the application of basic principles and scientific methods of management to logistics activities in the social production process based on the laws of physical flow of material data. Carry out planning, organization, command, coordination, control and supervision to achieve optimal coordination and cooperation of various logistics activities to reduce logistics costs and improve logistics efficiency and economic benefits. Modern logistics management is based on system theory, information theory and cybernetics.

Reference materials: Logistics Baidu Encyclopedia? Supply chain Baidu Encyclopedia