Transportation and logistics are among the most commonly misinterpreted terms. People confuse the two as the same because both involve shipping products and services from a location to another one. In reality, they are two separate terms, standing for two very different types of operations.
While transportation is concerned with the movement of goods or services from point A to point B, logistics deals with everything that comes in between the moment goods arrive at a warehouse till the time they reach the end consumer.
Logistics is more intensive because it also involves a lot of different things like handling inventory management, cataloging, packaging, and transportation. Transportation, on the other hand, is an independent activity only involving the transfer of products from one place to another. Logistics also helps manage the supply chain processes to ensure timely transportation of the goods from the manufacturer to the end consumer.
Let us understand the two terms better and see how they work together:
Logistics
Logistics is a series of processes involved with obtaining, managing, and distributing products and services. Think of it as a chain of events necessary to keep the supply of products from the manufacturer to the customer going while also taking care of all the processes that fall in between. It is a strategic activity that can help optimize the supply chain performance. Since logistics is an essential activity, its functioning directly impacts domains like the number of sales, customer satisfaction, etc.
Now let us talk about the main channels involved in logistics services:
Strategic Planning
Creating a strategic step-by-step plan about the flow of the logistics system is essential to ensure timely operations. For example, the efficient functioning of a retail store is highly dependent on how effective the planning for its logistics was. Where would the goods be stocked? When should they be packed and shipped? Who would do the quality checks on the goods? These activities are important in logistics.
Warehouse Management
Overlooking inventory is an essential part of logistics. Warehouse management includes keeping a tab on the goods – when they are arriving, in what condition, where they are being stored for maximum accessibility, and whether they are being delivered timely or not. If a warehouse is not managed properly, it can lead to delivery delays, and other inconveniences.
Data Analysis
Effective optimization of the logistics network has to be backed up by data analysis and measurement. Companies like AWL India support their operations using technology that makes it possible to aggregate and analyze data to improve overall management.
Getting the correct metrics and data analysis can help you figure out the channel that needs work. It can fasten the process of finding out problem areas and fixing them. Today, without data analysis, logistics operations are incomplete.
Transportation
Transportation is a part of the logistics system that deals with moving products and services to the point of end consumption in a moving vehicle. This is a critical activity which is also a part of the logistics system.
Transportation can be expensive and a proper strategy should be implemented to decide how this activity should be carried out in a manner that is profitable to the business.
When it comes to transportation of goods and services, the type of decisions required are usually concerned with:
- Which route would be shorter?
- What mode of transport should be used?
- Who will transport the goods?
Basically, planning efficient transportation involved figuring out the most accessible, affordable, quick, and profitable means. Some other considerations to be taken at the time of planning for transportation of the goods are packaging cost, goods size, weight, and goods security.
The transportation services are also be monitored to ensure the efficient flow of other operations. Technology-based logistics service provides like AWL India make it possible to do this. Real-time monitoring of the goods improves their visibility and gives you more control over the goods your transporting.
Are There Any Similarities in Logistics & Transportation?
It can be said that transportation is a subset of logistics. Without it, logistics operations cannot be completed.
One similarity that both these activities have in common is their dependency on technology for maximum optimization. Technological backup gives logistics and transportation operations a boost which makes them more efficient. It also aids with documentation, tracking, and real-time metrics that lets you analyze the performance.
It is also through technology that customer-service management becomes possible. As a business, you can get the customer’s honest feedback on their experience in no time. AWL India is a company that uses technology to monitor the progress and performance of logistics and transportation services. By partnering with them, your logistics and supply chain problems will be resolved professionally.
The Final Verdict
Although there are significant differences between logistics and transportation services, there is an important similarity too – they both need technology to imporve their efficiency. Transportation is also a key part of logistics, without which, its operation would remain incomplete. With the help of companies like AWL India, you can fulfill the needs for both these operations and optimize your supply chain management.
