Logistics vs Shipping. vs. Supply Chain

Logistics vs Shipping vs Supply Chain



These terms are so closely related that sometimes, they are used interchangeably.

But what do they really mean and how do they differ from each other?


In this sheet, we have provided a clear and concise comparison of logistics, shipping, and supply chain, highlighting their distinct characteristics, objectives, and roles in business operations such as:


1. Definition

Logistics (LOG): Management of the flow of goods, services, and information between the point of origin and consumption to meet customer requirements.

Shipping (SH): The physical process of transporting commodities and merchandise goods and cargo.

Supply Chain (SC): The network of all the individuals, organizations, resources, activities, and technology involved in the creation and sale of a product from the delivery of source materials from the supplier to the manufacturer, and eventually to the customer.

2. Scope

LOG: Broad, encompasses SH and parts of SC.

SH: Narrow, focused on the transportation of goods.

SC: Very broad, covers end-to-end process including LOG.


3. Activities

LOG: Involves warehousing, transportation, inventory management.

SH: Primarily concerned with packaging, labeling, and the physical movement of goods.

SC: Includes procurement, production planning, logistics, and customer service.

4. Objective

LOG: Efficient and effective transportation and storage of goods.

SH: Safe and timely delivery of goods.

SC: Streamlining operations from manufacturer to consumer to maximize customer value and gain a competitive advantage.

5. Focus

• LOG: Focus on operational details.
• SH: Focus on transit specifics.
• SC: Focus on overall strategy and integration of activities.