The logistics industry is much larger than the transportation industry. While transportation concentrates on the movement of goods from one place to another, the logistics industry indicates a broader spectrum and refers to the whole 'flow' management. This includes the transportation and delivery of goods and the storage, handling, inventory, packaging, and various other aspects.
Transportation is a work within the logistics industry operations. It is focused solely on the definition and deployment of transportation modes, such as sea, road, and air. However, it's also essential to distinguish between logistics and the supply chain. The supply chain is about the entire value chain from the suppliers to the end customer, including after-sales services and reverse logistics.
Transportation is described as the motion of people, animals, and goods from one location to another. These transport processes may include air, rail, road, sea, cable, pipeline, and space. This field is split into infrastructure, vehicles, and operations. Transport is critical as it enables trade and communication, ultimately establishing civilizations.
The logistics industry can be classified as the science of obtaining, producing, and distributing material and products to the proper place and in the right quantities. In military wisdom, where it has a higher use, its meaning also incorporates the movement of personnel. Logistics includes planning, implementing, and controlling procedures for the efficient and effective transportation and storage of goods. This incorporates services and related information from the source to the point of consumption to fulfill and conform to customer requirements.
What is the Difference?
Logistics requires planning, while transportation is the mode to execute when freighting goods from one point to another. They aren't the same thing, but transportation is simply a part of logistics. In the case of the logistics industry, logistics managers must make further decisions above the mode of transportation to include:
● Freight Damage Claims
● Importing and Exporting Regulations
● Working and cooperating with other executives within the supply chain
● Managing vendors and partners
● Accountable for risk mitigation
The developments of new technologies and improved business processes have had an immense impact on transforming the logistics industry and the transport industry. For example, technologies have permitted real-time monitoring of flow and resources, transparency across several points, and the seamless interchange of operational information with key performance indicators profoundly impacted the industry.
In this highly competitive market, information and physical products must move efficiently and at a lower cost, paired with improved service. Successful supply chain management and logistics are usually the difference between surviving and flourishing in the current marketplace. Upon enhancing the supply chain will see immediate benefits in terms of lower costs and optimized delivery.