What Is the Difference Between Logistics and Transportation?
It is a common misconception that logistics and transportation is the same thing. While logistics and transportation deals with getting products and services from one location to another, they are not the same.
Transportation is the movement of goods, which includes the storage, handling, inventory, packaging, and various other aspects. Logistics, put more simply, is the management of the inward and outward transportation of goods from the manufacturer to the end user across borders and between cities.
The fact is, both are very important parts of transportation and distribution services, but they are two extremely different parts of the supply chain and also two different industries.
Logistics
Logistics is the sourcing, producing, and distributing of raw materials and finished products in the appropriate qualities to the right place. Effective logistics relies on accurate planning, implementing, and managing procedures for the most efficient and effective storage and transportation of goods as possible.
All this has to do with good organization, speed, accurate quantities and choosing the most suitable transport.
In short, logistics management is a much broader service – it covers the whole process of cargo management not just transportation.
Transportation
Transportation is a much smaller in size, when compared to the logistics industry, and it only focuses on the movement of people, animals, and goods from one place to another.
Even though Transportation is not as big as Logistics it is still an important part, in light of the fact that it permits correspondence and exchange between two parties.
Transportation services revolve around the deployment of transportation modes — road, ocean, and air’ and is divided into three perspectives:
- Infrastructure
- Vehicles
- Operations
Transportation alone cannot deliver the products to customers. However, it is a crucial part when it comes to enabling trade and communication between a supplier and a customer.
What is the Difference?
Logistics requires planning, whilst transportation is the mode to execute the planning when freighting goods from point A to B. When it comes to the logistics industry, logistics executives must make further decisions beyond the mode of transportation to include:
- Packaging
- Containerisation
- Documentation
- Insurance
- Storage
- Importing and Exporting Regulations
- Freight Damage Claims
- Working and collaborating with other executives within the supply chain
- Managing vendors and partners
- Responsible for risk mitigation
Let FAMS International Logistics Manage Your Supply Chain
Working with a third-party logistics team can streamline these multiple roles within your supply chain. Whether you are a small or medium-sized business in Zimbabwe, Angola, Mauritius, or Malawi, you can benefit from outsourcing the bulk of your logistics operations to us. It can be a tricky task to focus on marketing and sales, your website, and advertising, along with the multiple aspects of the supply chain.
This is where FAMS International comes in. Our professionals will provide the solutions you need. We provide our clients with a wide range of services including freight forwarding, customs clearance, warehousing, ocean freight, rail freight and road freight.
For over 15 years we have worked hard to make sure our customers are getting the most out of their operations and that their processes are streamlined and effective. If you need advice as to what solution is best for you, or if you want to work with us, please contact us.