Supply Chain vs. Logistics: What’s the Real Difference?

If you’ve ever seen the terms supply chain and logistics used interchangeably, you’re not alone. Even inside organizations, the lines between the two can blur.

But while they’re closely connected, they are not the same thing.

Understanding the difference matters — especially when you’re hiring, restructuring teams, or defining leadership roles.

Let’s break it down clearly.

What Is Supply Chain?

Supply chain refers to the entire end-to-end system that moves a product from raw material to final customer.

It includes:

• Strategic sourcing & procurement

• Supplier management

• Demand planning

• Inventory strategy

• Production planning

• Transportation strategy

• Distribution network design

• Risk management

Think of supply chain as the architect of the operation.

It answers questions like:

• Where should we source from?

• How much inventory should we carry?

• What does demand look like 6 months from now?

• How do we reduce working capital without hurting service levels?

Supply chain is strategic, forward-looking, and cross-functional.

What Is Logistics?

Logistics is the execution arm of the supply chain.

It focuses specifically on the movement, storage, and flow of goods.

It includes:

• Warehousing operations

• Transportation management

• Fleet coordination

• Order fulfillment

• Last-mile delivery

• Freight optimization

• Inventory movement

If supply chain designs the system, logistics runs it.

Logistics answers questions like:

• Did the shipment leave on time?

• Is the warehouse picking efficiently?

• Are freight costs under control?

• Did the customer receive the order accurately?

Logistics is operational, tactical, and execution-driven.

The Simple Way to Think About It

All logistics is part of the supply chain.
Not all supply chain is logistics.

Supply chain is the strategy.
Logistics is the movement.

Why the Difference Matters for Hiring

For companies — especially in high-velocity distribution markets — confusing these two can lead to mis-hires.

For example:

• If your issue is rising transportation costs and missed OTIF metrics, you likely need a logistics leader.

• If your issue is excess inventory, poor forecasting, and margin compression, you likely need a supply chain strategist.

• If you're scaling nationally and redesigning your distribution footprint, you may need both.

We regularly see companies post a “Supply Chain Director” role when what they really need is a hands-on distribution operator. Or vice versa.

That distinction impacts:

• Compensation

• Leadership scope

• Technical requirements

• ERP and systems expertise

• KPI ownership

Real-World Example

Imagine a $500M distributor expanding into two new regions.

A VP of Supply Chain would:

• Model demand projections

• Redesign network strategy

• Negotiate supplier contracts

• Evaluate make-vs-buy decisions

A Director of Logistics would:

• Stand up the new distribution centers

• Hire warehouse leadership

• Implement WMS and TMS systems

• Oversee transportation execution

Both are critical — but they are not interchangeable.

Where the Lines Blur

In mid-sized companies, one leader often wears both hats.

You might see titles like:

• Director of Supply Chain & Logistics

• VP of Operations

• Head of Distribution

In these environments, the best leaders understand both strategic planning and operational execution.

As organizations scale, however, the roles naturally separate.

What This Means for Supply Chain & Logistics Leaders

If you’re a senior leader, clarity around your focus matters for positioning.

Are you:

• A network design and forecasting strategist?

• A warehouse and transportation execution expert?

• A hybrid operator who scales distribution infrastructure?

The market compensates each differently — and companies hire differently.

FAQs: Supply Chain vs Logistics

Is logistics the same as supply chain management?
No. Logistics is a component of supply chain management focused on transportation and warehousing execution.

Which is broader: supply chain or logistics?
Supply chain is broader. It encompasses sourcing, planning, procurement, manufacturing, and logistics.

Can someone move from logistics into supply chain leadership?
Yes — especially if they develop planning, forecasting, and financial acumen beyond pure operational management.

Which role typically pays more?
Senior supply chain strategy roles often command higher compensation, though large-scale logistics leadership in high-volume environments can be equally competitive.

Do small companies separate supply chain and logistics?
Often no. In smaller or growth-stage companies, one leader typically oversees both functions.

Final Thoughts

The distinction between supply chain and logistics is not just semantic — it’s structural.

Clarity around the difference leads to:

• Better org design

• Smarter hiring decisions

• Stronger operational performance

• Clearer leadership expectations

If you’re building or restructuring your team, defining this correctly is step one.

If you are hiring supply chain or logistics professionals in your market, Elevair Search Partners provides recruiting support aligned to the realities of modern distribution networks and operational performance demands.

Partner with Elevair Search Partners for recruiting support aligned to your supply chain and logistics leadership needs.