Difference between logistics and supply chain

Difference between logistics and supply chain

What is the difference between logistics and supply chain?

In a company, logistics stand out from the . Logistics are a concept whereby flows are optimized in a company, to serve the end customer. The covers a wide scope of applications, as it integrates logistics in the management and coordination of various professional activities.

Logistics consist in implementing all the resources available to a company to manage its internal operations. These resources can be of a financial, material or human nature. They generally encompass the flows specific to a warehouse. This implies receipt of the merchandise, and its or preparation prior to .

The covers a wider scope of applications, as it includes logistics in its optimization process. It concerns any job to do with the transport and conveyance of goods. One of the main differences between logistics and lies in their purpose. The former targets customer satisfaction, whereas the latter is an optimization lever that will grant a competitive advantage over other companies.

Logistics and supply chain: the 4 main differences

Though frequently used, these two notions are considerably different. The main differences between logistics and the can be explained by these 4 elements:

  • Logistics are encompassed in the processes that govern the entire ;

  • The is an optimization concept akin to a business model;

  • Logistics have the resources within a company to improve its internal organization regarding the handling of goods;

  • The is internal to a company, whereas logistics boast features likely to concern external activities too - given that it includes movement flows. Logistics aim to satisfy custom requests. The is a means of benefiting from a competitive advantage.

Examples and practical applications

To properly understand the , presenting said supply chain’s overall organization seems essential:

  • Research and development: innovation, product life cycle;

  • Purchasing and supplies;

  • Production and handling operations;

  • Logistics pertaining to incoming and outgoing flows: , , order preparation and delivery;

  • Customer service;

  • General roll-out.

This proves that logistics are an integral part of processes. Integrating these various flows is also taken into consideration in this optimization chain. These flows are essential for information, services, merchandise and financial movements.

Logistics and supply chain in figures

On a national scale, logistics and the represent the 5th largest economic activity. They generate close to two million permanent jobs. Depending on the different lines of business concerned and the means of transport that ensue, the sector boasts about 3% of annual growth. It should be noted that these growth figures are based on transport statistics, and vice versa.

Short-term recruitment perspectives suggest the creation of 500,000 additional jobs. Close to 78 million square meters are dedicated to warehouses and logistics platforms in France. They belong to the 4,400 professionals currently active in this sector.


Regulatory cornerstones

  • Regulation regarding logistics implementation in a company

  • Legislative framework pertaining to the management of logistical risks in professional environments

  • Labor Code