Logistics and Distribution

According to Wikipedia, “Logistics is the management of the flow of things between the point of
origin and the point of consumption in order to meet requirements of customer or corporations.
The logistics of physical items usually involves the integration of information flow, materials
handling, production, packaging, inventory, transportation, warehousing and often security.

Techopedia defines Logistics as, “Logistics management is a supply chain management component
that is used to meet customer demands through the planning, control and implementation of the
effective movement and storage of related information, goods and services from origin to
destination. The logistics management process begins with raw material accumulation to the final
stage of delivering goods to the destination.”

And finally let´s consider the CSCMP definition: “Logistics management is that part of supply chain
management that plans, implements, and controls the efficient, effective forward and reverses
flow and storage of goods, services and related information between the point of origin and the
point of consumption in order to meet customer´ requirements.

Logistics management activities typically include inbound and outbound transportation

management, fleet management, warehousing, materials handling, order fulfillment, logistics
network design, inventory management, supply/demand planning, and management of third party
logistics services providers.”

Distribution

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. Investopedia defines Distribution as “Distribution management refers to overseeing
the movement of goods from supplier or manufacturer to point of sale. Distribution management
is an overarching term that refers to numerous activities and processes such as packaging,
inventory, warehousing, supply chain and logistics. “CSCMP Defines Distribution as “The activities
associated with moving materials from source to destination. Can be associated with movement
from a manufacturer or distributor to customer, retailers or other secondary warehousing/
distribution points.”

And the BusinessDictionary.com describes Distribution as “The of movement of goods and

services from the source through a distribution channel, right up to the final customer, consumer,
or user, and the movement of payment in the opposite direction, right up to the original producer
or supplier.”
In summary Distribution and Logistics are largely synonymous. They can be used interchangeably
although I think that the general understanding and common application of the phrases would
suggest that Logistics is considered to be a more all-encompassing, end to end Supply Chain term.

If you are a smaller company with “jack-of-all-trades” employees, but are experiencing rapid
growth, then you will need to make a clear distinction between the logistics and distribution
departments. Bringing in a business coach with experience in logistics and distribution can help
ease the burden of organizational structuring as you scale.