Many of today\u2019s industries are related to or influenced by the movement of goods from point A to point B. If we are to take retailers, for example, the transportation and logistics industry plays a key role in their success. Yet, despite this, many use the two terms interchangeably, without understanding the difference between transportation and logistics management.<\/p>\n
Though both logistics and transportation are crucial in distributing materials and products, they tackle different things. Transportation deals with the movement of goods, while logistics handles\u00a0the supply chain management\u00a0of transportation from the manufacturer to the end-user.<\/p>\n
And while both work with getting products and services from one location to another, logistics handles storage integration, cataloging, handling, packaging, and\u00a0transportation. In other words, transportation is a subset of logistics and only includes the movement of products from one place to the other.<\/p>\n
Here are some of the basic terms and their meanings according to Fourteenth Edition of the APICS Dictionary APICS<\/p>\n
\u2022Supply Chain \u2013 The global network used to deliver products and services from raw materials to end customers
\n\u2022Supply Chain Management \u2013 The design, planning, execution, control and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure
\n\u2022Logistics
\n\u2022 \u2013 The art and science of obtaining, producing and distributing material and product in the proper place and in proper quantities.
\n\u2022Logistics Management \u2013 The part of Supply Chain Management that oversees the planning and execution of forward and reverse flow of goods and related information<\/p>\n
In simple terms, Logistics Management is a component of supply chain management. It is used to meet customer demands through effective planning, control and implementation of the movement of goods. Transportation of goods can be made via air, sea or road freight and even pipelines.<\/p>\n
Good logistics management is vital to a business success as it ensures the timely delivery of the organisation\u2019s requirement for fulfilment of its products or services in an economical, safe, efficient and timely contractual manner.<\/p>\n
Transporting goods via sea freight in a shipping container brings with it the challenges of import and export controls to ensure that the necessary legal documentation is in place to meet your country\u2019s clearance controls.<\/p>\n
Both inbound and outbound Logistics Management can be led by the organisation which may have their own in-house support team. This could also be outsourced to a 3rd party logistics provider (3PL) who can support both inbound and outbound logistics to meet the business\u2019s needs.<\/p>\n
The broader field of supply chain management includes logistics management as a component. The efficient flow of goods, services, and related information from the point of origin to the point of consumption is planned, carried out, and controlled by supply chain management. This is done to fulfil the demands of customers.<\/p>\n
An operation is organized and carried out through a logistics management process. This is the process of working on a project from start to finish to ensure that both your own and the customers’ expectations are met.<\/p>\n