What is the difference between logistics cost and total supply chain cost?

Logistics cost covers the direct expenses of moving and storing goods: transport rates, diesel surcharges, toll charges, warehousing fees, and packaging costs. Total supply chain cost is broader — it includes logistics cost plus procurement expenses, production costs, inventory holding costs, order processing overheads, and the financial consequences of supply chain failures such as stockouts, delayed deliveries, and damaged goods. For most goods-based businesses, logistics represents the largest single variable cost component in total supply chain cost, typically accounting for 8 to 12 percent of product revenue depending on the industry and transport modes used.