Supply chain vs. logistics: what's the difference

Logistics is the systematic planning and coordination of operations related to the efficient movement of goods, data, and resources from their point of origin to their destination. It covers both forward and reverse directions and storage of all raw materials, work in progress, and finished goods, as well as the exchange of order information between the point of origin and the point of delivery to customers. 

Logistics affects a company's financial performance and competitive position by reducing costs, improving inventory control, organizing warehouse space, expanding production capabilities, and increasing customer satisfaction. 

Although the term logistics is sometimes used interchangeably with the broader concept of supply chain management, it is only one aspect of the overall supply chain that focuses on transportation and warehousing. Transportation includes selecting delivery methods, carriers, and routes, as well as complying with any necessary regulations. 

The supply chain is a set of processes, resources, and stakeholders involved in the production and distribution of products. It includes all the actions necessary to transform raw materials into finished products and deliver them to customers. It begins before the goods leave the factory and ends at the stage of delivery to the consumer or on the store shelf.

An efficient supply chain reduces costs, allows you to respond quickly to market needs, and increases customer satisfaction. Key functions include demand planning, inventory management, storage, transportation, and distribution.

Depending on the business, the chain can be simple or very complex, but it always includes the following stages:

1. First mile (delivery from production or warehouse to logistics hub),

2. Warehouse logistics (receiving, storage, picking),

3. Transport logistics (transportation of goods to the customer or point of sale),

4. Last mile (delivery directly to the recipient).

First mile — the start of the logistics journey

This is the stage at which goods are moved from production or imported and sent to the main warehouse or distribution center. Here it is important to:

• plan shipments clearly;

• work with trusted carriers;

• have clear documents right from the start.

Even minor disruptions at this stage can “crash” the entire subsequent logistics process. That is why CONSOLID allows you to automate transportation requests, select a carrier through a tender, and have all documents in one place — even before the goods are moved for the first time.

Warehouse storage

It all starts with the warehouse. Nowadays, it is no longer just chairs and boxes. Modern warehouses operate using WMS systems. Organized storage, picking, and preparation for shipment are the first links in the chain.

Warehouses are not just a place for storage. They are order processing centers. This is where receiving, storage, and sometimes packaging and shipping take place.

If a warehouse operates inefficiently, it affects delivery speed. The following are particularly important:

• correct labeling;

• optimal placement of goods;

• accurate inventory management;

• fast picking.

CONSOLID integrates with WMS systems and allows you to link the warehouse with the transport part — so that everything works in sync.

Transport logistics — the heart of the process

Without a well-developed flight planning system, the chain breaks down right from the start. In CONSOLID, all stages of flight management are interconnected: tender announcement, partner selection, application formation, and creation of all documentation in one system.

At the center of everything is the flight. The cargo sets off on its journey to the customer. And this is where the greatest risks arise: delays, route changes, errors in documents. Cargo tracking allows you to always be aware of the latest flight data.

The last mile — closest to the customer, but the most difficult

The last mile is delivery to the end consumer or point of sale. And this is where the customer experience matters most. Delays, lost cargo, unclear statuses — all of this affects the brand's reputation.

When the goods are delivered, the final part of the cycle begins: confirmation of receipt, mutual settlements, and storage of history. If you currently keep track of this in Excel and on paper, you are spending up to 40% of your working time on it. An alternative to this is electronic document management. 

The CONSOLID solution helps you:

• choose a reliable carrier (with verification through YouControl and ratings),

• conduct tenders automatically,

• view the entire transportation process online, and

• exchange documents in electronic format.

Therefore, a transparent tracking system, the ability to obtain an electronic waybill, and delivery confirmation in the system are important elements. CONSOLID allows you not only to complete the delivery, but also to show its status in real time. 

Why it is important to automate the supply chain

Each link in the chain is a separate area of responsibility. But only when viewed as a whole can you see the full picture: where delays occur, why costs are rising, and who is actually doing the work efficiently.

CONSOLID combines all stages of logistics in one workspace. And this not only saves time, but also changes the approach to work:

instead of reacting to problems, you can anticipate them.