Which statement best describes the difference between supply chain and logistics?

• A. Logistics is movement and storage; supply chain includes logistics plus sourcing, planning, production, and coordination.
• B. Logistics and supply chain are identical concepts.
• C. Supply chain focuses only on marketing; logistics focuses only on inventory.
• D. Logistics handles procurement while supply chain handles sales.

Answer: (A)

The main idea is that logistics is the execution part of moving and storing goods, while the supply chain covers the whole system—from raw materials all the way to the final customer. Logistics focuses on the physical flow: transportation, warehousing, inventory management, and the related information that keeps those movements efficient. The supply chain, however, includes that logistics work plus the earlier and broader activities that bring inputs into the company and get finished products out to customers—sourcing or procurement, planning and forecasting, production or manufacturing, and coordinating with suppliers, manufacturers, distributors, and retailers.

So the statement is best because it correctly separates logistics as movement and storage from the broader supply chain, which adds sourcing, planning, production, and coordination. The other options miscast the relationship—for example, treating the two as identical, or reducing one to marketing or to inventory alone, or implying procurement is handled only by logistics and sales by the supply chain.