Many people ask for explanations about the difference between transport and logistics, and while the two are highly intertwined in terms of application, we can distinguish between them.
Transportation basically involves the ‘movement’ of commercial goods from point A to point B. Logistics, however, refers to that process that includes the planning and implementation of several management aspects to aid the smooth movement of goods along the supply chain.
Logistics helps a company handle everything from packaging, loading (or unloading), product inventory, shipment (or transportation), to warehousing (be it short-term or long-term storage).
Logistics as a service has evolved to become one of the most integral sub-sectors within supply chain management. Transport, on the other hand, is very crucial to logistics.
Let’s picture this: you have a huge party coming up this summer, and so you approach a friend to help you organize it. I bet one of the questions to likely pop up would be: “What are the logistics?” At this point, you explain all your plans and how you expect to execute the steps, all the way to the last episode on the D-day.
Now, if the planning involves the movement of goods and people, then one of the considerations would be how to handle the transportation part of it. In short, what would be your ‘transportation logistics?’
Basically, if you work for a company in the transport and logistics industry, your education and training should have prepared you for two things- both of which are crucial to the industry.
One is to have a thorough understanding of the various modes of transport, and two is to use your skills to plan and execute detailed logistical operations. The goal is to optimize the use of resources within supply chain management.