Before saying anything I wanted to point you to this (very similar discussion):
Is it better to use Cache or CDN?
Having said that, this is how CDN and Caching can improve your website's performance.
CDN: This service helps you stay "closed" to your end user. Wit CDN, your websites content will be spread over a system of servers, each in its own location. Every server will hold a redundant copy of your site. When accessed by visitor, the CDN system will identify his/hers location and serve the content from the closest server (also called POP or Proxy).
For example: When visited from Australia your be server by Australian server. When visited from US you'll be server by US server and etc...
CDN will me most useful is your website operated outside of its immediate locale.
(i.e. CDN will not help you is your website promotes a local locksmith service that only has visitors from your city. As long as your original servers are sitting near by...)
Also, the overall coverage is unimportant.
You just need to make sure that the network covers all locations relevant to you day-2-day operations.
Cache: Provides faster access to your static or/and commonly used content objects. For example, if you have an image on your home page, and that image is downloaded again and again (and again) by all visitor, you should Cache it, so that returning visitor will already have it stored in his/hers PC (in browser Cache). This will save time, because local ressourses will load fasted and also save you bandwidth - because the image will load from visitor's computer and not from your server.
CDN and Caching are often combined, because this setup allows your to store Cache on the CDN network.
Also, this dual setup can also help improve Caching efficiency - For example it can help with dynamic Caching by introducing smart algorithms into the "top" CDN layer.
Here is more information about Dynamic Caching (also good introduction to HTTP Caching directives)
As you might already know, from reading the above mention post, no one method is better and they are at their best, when combined.
Hope this answers it
GL