The role of logistics in the supply chain

Supply chain and logistics are two terms that are frequently used interchangeably although, in reality, they refer to different processes in the operations of a company that are closely related.

Logistics refers to all activities focused on getting the correct product to its final destination, in the best possible time. That is: storage, inventory, transportation and, in some cases, customer service.

For its part, the supply chain consists of the network of facilities and processes that intervene throughout the life cycle of a product until it reaches the final consumer, and consists of three phases:

● The supply, which consists of the acquisition of raw materials for the elaboration of the products.
● Manufacturing, in which raw materials are transformed into marketable products.
● Distribution, which refers to the processes that seek to get the products to the customer.

In this way, logistics is the operational component of supply chain management, and intervenes in all phases with tasks such as:

● The efficient management of the storage of goods and raw materials.
● The organization and execution of transport.
● Distribution planning down to the last point.

For all this, having a logistics service provider allows companies to optimize times, costs and, in general, increase their long-term competitiveness. At ABC® Logistics, we have the experience and specialized team to help you coordinate these processes in your supply chain. Learn more about our services here.