WHAT IS THE DIFFEREN CE BETWEEN TRANSPORT ATION AND LOGISTICS?
Logistics and transportation are two very important parts of transportation and
distribution services, and they are different. Transportation is the movement of goods and
logistics is the management of the inward and outward transportation of goods from the
manufacturer to the end user. These terms are often used interchangeably, but they are two
extremely different part of the supply chain. Logistics and transportation deals with getting
products and services from one location to another. Although logistics and transportation are
used interchangeability, the differences are simply logistics deals with the integration of
storage, transportation, cataloging, handling, and packaging of goods. Transportation deals
with the function of moving products from one location to another.
Logistics
Logistics is obtaining, producing, and distributing materials and products in the right
qualities and to an end user. Logistics includes the science of planning for managing and
implementing procedures for the most efficient and effective storage and transportation of
goods and services. Services and other information from the source point to the consumer is
sent through logistics channels to meet and fulfill customer needs.
Logistics has added benefits and functions that are different from transportation
services. Logistics managers need to make decisions based on packaging, containerization,
documentation, and insurance, storage, importing and exporting, regulations, and freight
damage. They also deal with work and collaborating, claims, managing vendors and partners,
and risk mitigation.
Transportation Services
Efficient transportation is important to the survival of a transportation and distribution
service. Efficient transportation should be analyzed for the best delivery route, as well as cost-
effective packaging that ensures low investment and safety of goods.
Transportation services include the movement of goods and services, people, and
animals from one location to another by rail, road, air, sea, cable, space, or pipeline.
Transportation services can be divided into three different areas: infrastructure, vehicles, and
operations. Transportation allows communication and trade between the two parties.
When planning the shipment process, the method of transportation is a significant
consideration. You need to determine the costs, how important is it to get the shipment to the
end user in what period, the value of the goods as well as the size and weight of the goods.
Important tips for effective logistics management include:
Proper planning is the first step to accomplishing a task. Planning involves obtaining
the products, facilities to store the good before delivery, and transportation of products
to the end users.