Know the Difference between Logistics and Transport
Transportation industry is much smaller and is a significant part of the logistics industry. Transportation focuses on the movement of goods from one place to another, while logistics is a broad term and includes freight management, that is, logistics deals with the integration of storage, handling, sorting, packing and transportation of goods.
As earlier said, transportation is part of the logistics industries and concentrates on movement of goods, via road, sea and air. Logistics companies in Chennai work with these transportation companies for the deployment of goods. A transport company independently can’t deliver to customers; it needs a communication channel that enables trade between a supplier and a customer. If a customer wants to deliver consignment, it is always best to use the services of a freight forwarder who takes care of the services right from the dispatch till the delivery of products to the clients’ delivery point.
Logistics management includes procuring, obtaining, producing and distributing materials and products to the customer at the right time and place. Logistics involves planning, managing and implementing strategies for the operational efficiency of the transportation. The logistics also takes care of the tracking and tracing of the consignment from the point of origin to the delivery point.
What is the difference?
If simply put, logistics is all about planning and implementing while transportation is executing the plan for distribution of the consignment. Both have to work hand-in-hand for a successful operation. Transportation forms part of the freight services and freight services is part of the logistics. Logistics also takes care of:
- Sorting and storing
- Picking and packing
- Freight claims
- Managing and communicating with vendors and its customers and other parties
- Risk mitigation
How technology helps
The evolving technology has a huge impact on both, the logistics industries as well as on the transportation industries. As soon as the consignment is out for delivery, the tracking system starts its work, thus increasing transparency in the transaction and between multiple stakeholders. You can have minute details and can focus on the decisions that can be smoother and at a quicker pace.