It's a fast-paced world with many moving parts, and maybe your work already plays some role in connecting the dots. Whether you work for a warehouse, a shipping company or in a totally different field, you've found yourself here for one reason: You're fed up with the inefficiency of it all.
You’ve seen some nonsense cost the company, the clients and the employees—all through a lack of organization. You're starting to think about whether a degree could help you get a manager job, because you're pretty sure you're capable of taking matters into your own hands. Research keeps leading you to the same question: Do supply chain and logistics mean the same thing?
Let's clarify what each of these terms means, the key differences between them and how they might impact your future career.
Supply chain vs logistics: Definitions
Jargon, acronyms and technical terms are a part of every major industry—and the logistics and supply chain space is no exception. If you're interested in moving up the ranks in a supply chain management or logistics management role, gaining a solid understanding of what each term means is an essential step.
Supply chain management definition
Supply chain management encompasses the planning and management of all activities involved in sourcing, procurement, conversion and logistics management, according to an official definition from the Council of Supply Chain Management Professionals® (CSCMP®).1
Supply chain management also includes coordination and collaboration with channel partners. This can be suppliers, intermediaries, third party service providers and customers. Essentially, supply chain management integrates supply and demand management within and across companies.1
The primary responsibility of supply chain management is linking major business functions and processes within and across companies into a cohesive and high-performing business model. It includes all of the logistics management activities noted above, as well as manufacturing operations, and it drives the coordination of processes and activities across marketing, sales, product design, finance and information technology.1
Logistics management definition
As you can probably glean from the above definition, logistics management is just one part of supply chain management. More specifically, it's the part that plans, implements and controls the efficient and effective forward and reversed flow and storage of goods, services and related information between the point of origin and the point of consumption to meet customer requirements.1
Logistics management activities typically include:1
- Inbound logistics and outbound logistics
- Inbound and outbound transportation management
- Fleet management
- Warehousing
- Raw materials handling
- Order fulfillment
- Logistics network design
- Inventory management
- Supply and demand planning
- Third party logistics services providers management
Logistics may also include varying levels of sourcing and procurement, production planning and scheduling, packaging and assembly and customer service. The function is involved in all levels of planning and execution—from the strategic to the operational to the tactical.
Just like overall supply chain management, logistics management is an integrating function coordinating and optimizing all logistics activities. It may also connect logistics activities to marketing, sales manufacturing, finance and information technology.1
Supply chain vs logistics: Key differences
The main thing to understand when it comes to supply chains and logistics is that they're not two completely separate or unrelated terms. And they're also not the one and the same. Logistics is a part of supply chain management—and the overall supply chain encompasses logistics.
Given that one is part of the other, there are some key differences between the two functions that can be helpful for understanding how they fit together.2
1. Size and scope
Supply chain operations include and integrate every step and process across the supply and demand network. In that sense, the size and scope are all-encompassing.1
In comparison to the entire supply chain, the size and scope of logistics is smaller. Logistics encompasses just one part of the supply chain: The part centered around the flow and transportation of goods to and from the customer.1
2. Focus and specialty
Effective supply chain management is centered around sourcing and procurement, conversion and logistics management. Efficiently coordinating and integrating every aspect of supply and demand management across business operations is the goal.1
The focus of logistics specifically is the flow and transportation of goods to and from the customer—and all the planning, management, materials handling and network design that goes into that.1
3. Collaboration and connections
The supply chain links all major business functions. A collaborative supply chain network includes connections across logistics, manufacturing, marketing, sales, product design, finance and information technology.1
Where the supply chain links all major business functions, logistics primarily integrates the activities within its own function. That said, logistics may also collaborate with marketing, sales manufacturing, finance and information technology.1
4. Perspective and impact
As an overarching function, supply chain management takes a big-picture strategic view. With its focus on integrating all supply and demand functions, supply chain management has a longer-term impact and shifts over time as trends and markets change.2
The logistics function is focused more on shorter timeframes. The day-to-day, and even hour-by-hour operations that go into order delivery and fulfillment to get goods to consumers and increase customer satisfaction. Rather than be optimized to meet long-term trends and demands, it's optimized to meet immediate and short-term ones.2
Supply chain vs logistics: Education
In the realm of education, the differences between these two terms may be emphasized less. That's because a solid bachelor's-level degree program would typically cover and focus on both supply chain management and logistics topics. Think of it the same way as how a bachelor's-level degree program in economics would consist of both macro and microeconomics courses—laying a foundation for two major areas of the field before students move on to focus on one.
As an example of how supply chain and logistics programs are typically structured, here's an overview of Rasmussen University's Supply Chain and Logistics Management Bachelor's Degree program, which can be finished in as few as 18 months.3
Sample supply chain and logistics courses
Procurement and Supplier Relations
Examines multiple purchasing techniques across a range of industries. Offers insights into tactical and strategic decisions routinely found in today's business environment. Demonstrates how to effectively source, solicit bids, negotiate and select suppliers based on real-world scenarios.
Supply Chain Risk and Compliance
Reviews global regulatory compliance mandates. Examines the scope, impact and risks associated with regulation requirements on the supply chain—including managing logistics, trade compliance and environmental and safety compliance.
Transportation and Distribution Management
Covers the essentials of transportation and distribution management. Builds key skills related to selecting the optimal mode of transportation while considering the impact to customers and overall supply chain.
Top supply chain and logistics program skills
If you pursue education in this area, there are some important skills you can expect to work on.
Apply business functions
Develop and apply lean end-to-end processes and tools to deliver goods and services that create value, enhance efficiency and satisfy customers.
Build efficiency through technology
Apply supply chain information technologies, processes and analytics to implement best practices, inform procurement decision making and build relationships.
Gain real-world experience and career confidence
Demonstrate your readiness to hit the ground running through hands-on experiences, and get the skills and you need to feel confident in your career.
Prepare to take the APICS® CSCP® Exam
Completing a bachelor's degree in supply chain and logistics management, along with two years of related work experience, can prepare you for the APICS CSCP exam. It is important to check the education and work experience requirements for eligibility to take the CSCP examination.
The CSCP is highly valued by employers, and it is the most widely recognized educational program for operations and supply chain management professionals around the world.4
Prepare for project management exams
Through the formal education provided by coursework in this program, you may become eligible to sit for the Certified Associate in Project Management® (CAPM®) exam.
It is important to check the specific project management education requirement determined by the Project Management Institute (PMI®) for the CAPM® examination. This information is listed in the Certified Associate in Project Management (CAPM®) handbook.
Supply chain vs logistics: Career paths
When it comes to pursuing a supply chain management or logistics management career, there are a few things to know about each type of role.
Supply chain management careers
You can see how exciting and satisfying a supply chain management career could be. Supply chain management careers tend to be both data-driven and relationship-oriented, meaning they're well-suited to individuals with an affinity for numbers and technology systems as well as people skills and the desire to manage others.
Supply chain management can be a high-pressure field, but it all comes down to being passionate and motivated.
Logistics careers
If you're interested in a career focused on logistics specifically, you're likely already aware of the importance of this global field. It's an essential part of the exciting and challenging supply chain industry, and you'll succeed if you're a motivated worker who doesn't let pressure get to you.
Employers hiring for logistics roles tend to look for candidates with bachelor's degrees, and you'll probably see opportunities across a wide range of settings. Strong analytical and problem-solving skills are essential in logistics manager roles, and soft skills like communication and teamwork will be equally important throughout your logistics journey.
Become a supply chain and logistics management professional
From a supply chain manager to a logistics manager to a related role, there are a number of career paths to consider if you choose to pursue a supply chain management degree program—opening doors to higher-level positions and giving you a competitive advantage in a fast-growing market.
For an idea of some roles you can pursue with a bachelor's degree in supply chain and logistics management, check out the article: "What Can You Do With a Supply Chain Management Degree? 8 Careers to Consider."
CSCMP® is a registered trademark of COUNCIL OF SUPPLY CHAIN MANAGEMENT PROFESSIONALS
APICS® is a registered trademark of APICS, INC.
PMI® is a registered trademark of Project Management Institute, Inc.
Certified Associate in Project Management® is a registered trademark of Project Management Institute, Inc.
CAPM® is a registered trademark of Project Management Institute, Inc.
1Council of Supply Chain Management Professionals (CSCMP), CSCMP Supply Chain Management Definitions and Glossary, (accessed April 2024), https://cscmp.org/CSCMP/CSCMP/Educate/SCM_Definitions_and_Glossary_of_Terms.aspx
2Invensis, The Differences Between Supply Chain and Logistics, (accessed April 2024), Supply Chain vs Logistics: [What's the Difference?] (invensis.net)
3Completion time is dependent on transfer credits accepted and the number of courses completed each term.
4CERTIFIED SUPPLY CHAIN PROFESSIONAL, ASCM Los Angeles Chapter, (accessed April, 2024) https://www.lapics.org/education/CSCP.
