A brief explanation of logistics and the supply chain. For your information, logistics is a part of the supply chain.
Logistics
Logistics is the process of strategically managing the procurement, movement and storage of materials, parts and finishing inventory (and the related flows of information) through the organisation and its marketing channel in such a way that current & future profitability are maximised through the cost-effective fulfilment of orders.
Logistics deals with the planning and control of material flows and related information in organizations, both in the public and private sectors. Broadly speaking, its mission is to get the right materials to the right place at the right time, while optimizing a given performance measure (e.g. minimizing total operating costs) and satisfying a given set of constraints (e.g. a budget constraint).
In the military context, logistics is concerned with the supply of troops with food, armaments, ammunitions and spare parts, as well as the transport of troops themselves. In civil organizations, logistics issues are encountered in firms producing and distributing physical goods. The key issue is to decide how and when raw materials, semi-finished and finished goods should be acquired, moved and stored.
Supply chain
A supply chain is a complex logistics system in which raw materials are converted into finished products and then distributed to the final users (consumers or companies). It includes suppliers, manufacturing centres, warehouses, DCs and retail outlets.
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