The Difference Between Operations and Logistics: A Comprehensive Guide

Logistics is the efficient flow and storage of products from their point of origin to the point of consumption.

Operations

planning, on the other hand, is the strategy employed by an organization that affects all aspects of production. These strategies range from workforce activities to product delivery. Logistics is mainly concerned with organizing the distribution, shipping and storage and preparation of orders in an efficient manner.

It comes from the “Maréchal des Logis”, a military term coined by Napoleon for his army. Literally, he is the person who organizes “accommodation” in the army, a housing marshal. As Napoleon once said: “L'intendance suivra, which means don't bother,” logistics specialists will organize food and accommodation backstage. In addition, the supply chain includes all the movements of goods between the company's suppliers and customers, including transformation (production) operations.

The management of logistics operations refers to the supervision of the entire process of logistics operations, from managing relationships with suppliers to managing inventory and shipping orders to customers. Operations management tends to be associated more with the production of goods than with the movement of goods. Logistics operations managers manage distribution centers and oversee shipping operations and order fulfillment. These crucial warehouse operational management systems help track where the items are located, when they arrived and how long they have been there.

It's difficult to find ways to improve logistics operations without access to accurate, real-time data. While larger companies may have logistics managers dedicated to managing logistics operations, small business owners often manage them themselves. An e-commerce logistics operation is the backbone of an e-commerce business and plays a vital role in boosting sales and preparing for future growth. There are strong parallels between the skills required for effective operations management and those needed in both logistics and supply chain management.

He depends on an asset operations manager responsible for operating plants and warehouses and a supply chain manager who organizes and plans the movement of goods between all entities in the supply network (chain). Since e-commerce logistics has a lot of moving parts, inventory management becomes a challenge without the proper ways to track e-commerce inventory throughout the process. Logistics operations are made up of a series of processes that work together to optimize the supply chain, from the delivery of products from the manufacturer to the seller to the delivery within the last kilometer. Excellent organizational skills are crucial to improving efficiency and boosting productivity as an operations manager.

Without streamlined logistics operations, you'll end up with several loose ends that will affect both your profit margins and your customer satisfaction. Inventory management, warehousing and order fulfillment play a key role in optimizing logistics operations. Orders that are shipped to customers accurately and quickly indicate how well you manage your logistics operations.