Supply Chain, Logistics, and Transportation

Supply Chain:
The supply chain is a broad term that includes all processes involved in the production and distribution of goods, from the procurement of raw materials to the delivery of finished products to the end customer. It involves multiple stages and various entities such as suppliers, manufacturers, distributors, and retailers.

Logistics:
Logistics is a component of the supply chain that focuses on the planning, implementation, and control of the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption to meet customer's requirements. It includes activities such as inventory management, warehousing, packaging, and transportation.

Transportation:
Transportation is a part of logistics that specifically involves the movement of products, materials, and personnel from one location to another. It involves activities like selecting the mode of transportation (such as by truck, ship, train, or airplane) and planning and managing routes and shipment schedules.

Similarities and Differences:
✔ All three concepts involve the movement and flow of goods.
✔They are designed to work together to ensure that every step, from raw material procurement to end-product delivery, is seamless and efficient.

The differences lie in their scope.
❌ A supply chain has a broader scope and involves all stages of procurement, production, and distribution.
❌ Logistics is an essential component of the supply chain and includes inventory management, warehousing, and handling, in addition to transportation.
❌ Transportation refers specifically to the movement of goods and materials between locations.

Reference: Christopher A. Saavedra