Direct answer. Logistics covers the physical operations, transport, storage, handling, order picking, that move a product from one point to another. The supply chain designates a broader scope: it includes logistics, but also purchasing, production, demand forecasting and end-to-end coordination with suppliers and customers.
Two overlapping notions, not synonyms
In everyday usage, "logistics" and "supply chain" are often used for one another, which keeps the confusion alive. Historically, logistics is the older discipline: it refers to the resources (warehouses, transport, handling, information systems) deployed to keep a physical flow moving, from supplier to end customer, via intermediate storage. It answers operational questions: where to store, how to transport, with which handling resources, at what cost.
The supply chain encompasses logistics but adds everything upstream and downstream of the physical flow: production planning (S&OP, master production schedule), purchasing and supplier management, demand forecasting, and overall coordination between every link, from the raw-material supplier to the end customer, integrating information and financial flows alongside the physical flow. A company can have very efficient logistics (well-organized warehouses, reliable transport) without finely managing its supply chain if coordination between production, purchasing and distribution remains siloed.
In practice, logistics is often seen as an operational building block of the supply chain, which itself takes a more strategic, cross-functional approach. This distinction shapes the organization of many companies, where a supply chain director oversees several functions (purchasing, production, logistics, customer service) while a logistics manager focuses on the physical execution of flows.
FAQ
Can "logistics" and "supply chain" be used interchangeably?
In everyday language, yes, the two terms overlap considerably. Strictly speaking, logistics is an operational component (transport, storage, handling) built into the supply chain, a broader scope that also covers purchasing, production and demand forecasting.
Which indicators are specific to logistics rather than the supply chain?
Classic logistics indicators (service rate, OTIF, stock turnover rate, transport cost) measure operational execution. Supply chain also tracks end-to-end indicators, such as overall supplier-to-customer lead time or demand forecast reliability.
Related terms
Intralogistics · Logistics KPI · OTIF · Service rate · Lead time · S&OP · 3PL / 4PL.
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