You may be curious about the difference between supply chains and logistics. At times, these terms are used interchangeably; however, there are important differences between the functions, capabilities, inputs, and outputs of each. The most apparent distinction is that supply chains entail the overall sourcing, processing, and delivery of goods to the end customer, while logistics focuses on moving and storing goods between different supply chain organizations. Let's look at the key differences between supply chains and logistics.

What is the difference between supply chain and logistics?What is the Supply Chain?

The supply chain can be described as a network between producers and suppliers to distribute finished goods to consumers. A supply chain includes the delivery of source materials from the supplier to the manufacturer until it is eventually delivered to the end user. There are many factors included in a supply chain, such as people, activities, entities, information, and resources. Simply, the supply chain takes raw resources and converts them into a finished product that customers eventually buy. 

Supply Chain Management

Supply chain management oversees all the activities involved in converting raw resources into a finished product. Supply chain management must organize and coordinate all of the entities involved in the supply chain. A proper supply chain management strategy will increase a business's overall revenue and sales. 

What is Logistics? 

Logistics is one link in the multiple links of the supply chain. It involves how materials are stored and transported to their destination. In recent years, logistics has been used as a synonymous word for the supply chain. However, logistics is just one aspect of the supply chain.

Logistics Management

Identifying proficient suppliers and distributors are key components of logistics management. These organizations must be effective and accessible in their tasks to make logistics perform efficiently. The ultimate goal of logistics management is to have the right product at the right place and time. Also, these products must be in proper condition upon arrival at their final destination. 


 

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  • Loss Prevention. Reduce the amount of loss that occurs during the supply chain process
  • Location Coverage. AirFinder Everywhere uses a combination of GPS, Cellular, and WiFi to determine location everywhere
  • Security Alerts. Know when a delay in shipment has occurred so the problem
    can be addressed immediately.

 

Benefits of Supply Chain and Logistics Management 

  • Decreased Costs

Improved organization helps your inventory system reduce the number of damaged products, reduce inventory backups, and reduce misplaced products, which will lower costs since you no longer have to pay for replacements.

  • Improved Efficiency

As demand for your product changes, so must your supply chain. Having the ability to manage your supply chain systems will allow your company to better predict future demand which ultimately will lead to higher efficiency. 

  • Increased Output 

Cooperation and communication are significant factors in the supply chain. As communication is increased along the supply chain, it will increase coordination and collaboration. When your supply chain is optimized, you can increase throughput.

  • Increased Sales 

Increased output and collaboration will allow your company to have more consumer products. It also allows you to respond to convert raw materials into sellable goods faster.

  • Lower Delays 

With proper communication, everyone should know their role in the supply chain. As a result, delays can be reduced or even eliminated. Logistical errors can be sorted out with a well-planned and executed supply chain strategy. With this supply chain and logistics strategy, your company will also be alerted of delays in order for problems to be quickly addressed.

Effects on Sustainability

Supply chain and logistics sustainability refer to the efforts made to consider the environmental and human impact of a company's products. The goal is to minimize environmental harm from factors such as energy usage, harmful emissions, and waste buildup while positively impacting the people and communities around their operations. While supply chain and logistics management generally focus on their operations' speed, cost, and reliability, sustainable supply chain and logistics management adds goals of upholding environmental values. Here at Link Labs, our AirFinder system provides the most sustainable asset tracking for logistics and supply chains specifically in tracking returnable pallets. Through tagging crates and pallets with SuperTag, our users are provided with more utility with the same returnable crates leading to less packaging waste. Many of Link Labs’ customers have adopted this strategy to easily track and locate crates, pallets, and their contents, preventing taxing events such as lost materials and inventory. Our team is dedicated to providing environmentally-friendly asset tracking solutions for an affordable price. A few reasons why our solution is the most sustainable are: 

  • Returnable Crates and Pallets
  • Longer Battery Life
  • Emissions Reduction
  • Cold Chain Monitoring

Our team is dedicated to providing environmentally-friendly asset tracking solutions for an affordable price.

How AirFinder Aids in Supply Chain and Logistics Management 

Supply chain and Logistic management is not an easy task to solve. It requires a large amount of communication and coordination between multiple entities. If an error is to occur, it can be challenging, costly, and time-consuming to find where the error occurred in the supply chain. Link Labs has developed a real-time asset tracker to solve this issue for businesses. Airfinder can update users on the location, position, and condition of an asset. It allows for more transparency in the supply chain to help reduce errors and increase efficiency. If you are trying to optimize your supply chain strategy, Airfinder is perfect for you! Learn more by visiting our website.

Jennifer Halstead

Written by Jennifer Halstead

Jennifer Halstead, MBA, CPA brings more than 20 years financial industry experience to Link Labs. She began her career in finance within the pharmaceutical industry and has continued in both public accounting and private companies. She passed the CPA exam with the 3rd highest score in the state and completed her MBA with an accounting concentration (summa cum laude). Jennifer has worked with several software companies and has led multiple venture financing, merger and acquisitions deals. She has helped companies expand internationally and has managed the finance department of a startup to 33 consecutive quarters of growth prior to acquisition. After the acquisition, she served as the Controller of Dell Software Group’s Data Protection Division where she managed a portfolio of multiple hardware and software products to scale and achieve over triple-digit growth worldwide in 18 months. Jennifer brings a depth of finance experience to the Link Labs team.

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