How does logistics differ from distribution

Email Address. Subscribe to Supply Chain Game Changer. On the surface some people may consider them synonymous. Without consulting a dictionary both Logistics and Distribution suggest imagery involving the movement of goods. But to anyone who works in Supply Chain, in particular with a title including either the term Logistics or Distribution, or if you work in a Distribution Centre or for a Logistics company, then there are distinct differences between these words.

The logistics network of physical items usually involves the integration of information flow, materials handling, production, packaging, inventory, transportation, warehousing and often security.

The logistics management process begins with raw material accumulation to the final stage of delivering goods to the destination. The word Distribution has so many different meanings beyond that which is associated with Supply Chain Management that we have restricted these definitions to those only consistent with our context. Distribution management is an overarching term that refers to numerous activities and processes such as packaging, inventory, warehousing, supply chain and logistics.

Distribution, on the other hand, is a subset of logistics, and its main goal is to ensure that goods are delivered as efficiently and cheaply as possible. In other words, logistics takes an overall view of the entire process of improving distribution channels and warehouse management to ensure the smooth flow of the supply chain. In the distribution vs. Logistics includes transportation management, fleet management, warehouse management, proper handling of materials and inventory management.

Distribution includes things such as packaging, storage, order fulfillment, and handling customer and vendor returns. Sampson Quain is an experienced content writer with a wide range of expertise in small business, digital marketing, SEO marketing, SEM marketing, and social media outreach. For these jack of all trades type roles, the practical distinction between logistics and distribution becomes blurred and irrelevant.

Given the above definitions, it would be easy to say that distribution and logistics are for the most part synonymous, when it comes to a general understanding of the terms. When delving deeper, distribution may be seen as a subset of logistics, where logistics management is very much more involved with more aspects to it to handle than distribution.

Logistics is considered to be a more all-encompassing, end to end function in supply chain management. If you are looking for distribution services for your retail business, Best Inc. With our coast-to-coast, online-to-offline distribution capabilities, we are the number one choice for your business needs. Contact Best Inc. But opting out of some of these cookies may affect your browsing experience. Necessary Necessary.

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