Global supply chains are essential to global commerce, and basic logistics is also important to success.
However,the terms “supply chain” and “logistics” often confused with each other.
The big difference is that the supply chain is responsible for the purchase, processing and delivery of the entire product to the end customer.
While logistics is dedicated to the transfer and storage of goods between different supply chain organizations.
In this blog,we will explain the relationship between them.
Logistics is the part of supply chain
It is an important part of the supply chain and is essential to ensure good supply chain performance.
The supply chain may contain many different types of logistics companies and all of them are dedicated to helping the supply chain run smoothly.
However, each business is only responsible for a unique and part of the supply chain.
Make a plan
Since logistics companies are responsible for parts of their supply chain, they will do some steps.
- Plan how to move goods from one place to another
- Transport and store the goods
- Distribute products to customers
Plan how to move goods from one place to another
Logistics companies use various transportation such as land, air and sea to deliver goods quickly and efficiently.
They use the advantages of containerization to transport goods between different types of transportation.
After the goods arrive at their destination, logistics company will store them in warehouses or other facilities.
They will keep the goods until further goods in the supply chain are needed.
Distribute products to customers
Some logistics companies specialize in distribution-the delivery of goods to the end customer, often referred to as “last mile delivery.”
Supply chain is the overall framework
Now that we understand what logistics is, it is time to learn about supply chain.
The supply chain represents the connection and collaboration between suppliers and customers.
Supply chain management is the function of supervising and delivering goods and services between their origin and final destination.
Supply chain has multiple organizations
The entire supply chain brings multiple subjects together to purchase, manufacture, transport, store, supply and sell goods.
- Supplier: Produce materials and component.
- Manufacturer: Use materials and other inputs to make component or products.
- Logistics: store and transport the goods throughout the supply chain.
- Wholesalers: purchase goods to distribute to stores or other sales outlets
- Retailer: Selling products to consumers
I believe you have a certain understanding of the relationship between them.
logistics plays a vital role in ensuring the smooth flow of materials and finished products in the global supply chain.
Since logistics companies are so important in the entire supply chain, where should we find a good logistics company?
I think i can point you a right road——joining a logistics network,like WCA and GLA.
GLA is the world’s most effective small and medium international logistics B2B platform.
It helps small and medium-sized international logistics companies in 170 countries around the world to match the most suitable international agency resources.
If you are engaged in the logistics industry,i think this network will help you get more business.