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Discover how logistics and supply chain management differ in scope, strategy, and execution. Understand both roles in modern commerce. Read the full breakdown.
Introduction: Are Logistics and SCM the Same Thing?
Many businesses use “logistics” and “supply chain management (SCM)” interchangeably—but they’re not the same.
While both are essential to moving goods efficiently, they differ in focus, function, and scope. Understanding these differences is key to choosing the right systems, tools, and strategies for your business.
📘 Want the full breakdown? Read the Full Comparison.
What Is Logistics?
Logistics refers to the movement and storage of goods. It focuses on:
- Transportation (inbound/outbound)
- Warehousing and storage
- Inventory handling
- Packaging and order fulfillment
🧭 In short: logistics is the operational side of moving goods.
What Is Supply Chain Management (SCM)?
SCM is broader. It includes logistics—but also:
- Procurement and supplier relationships
- Demand forecasting and planning
- Production and manufacturing
- Technology and data analytics
- End-to-end supply chain strategy
📦 SCM = the entire system that moves a product from supplier to customer.
Key Differences at a Glance
| Feature | Logistics | Supply Chain Management |
| Focus | Goods movement | End-to-end process |
| Scope | Narrow (transport) | Broad (sourcing to delivery) |
| Strategy | Operational | Strategic + operational |
| Goal | Efficient delivery | Competitive advantage |
Why It Matters to Your Business
Knowing the difference helps you:
- Choose the right technology (ERP, WMS, TMS)
- Improve cost control and decision-making
- Identify where to optimize for speed or savings
- Align your team with the right KPIs
Whether you run an e-commerce brand or a global warehouse network, clarity on this distinction is critical to growth.
Final Thoughts: Logistics is a Piece—SCM is the Puzzle
Think of logistics as a single gear, while SCM is the entire machine. Both matter—but one drives the bigger picture.
Still unsure which one you need to improve? Read the Full Logistics vs. SCM Comparison.
