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The Complete Guide to Logistics and Transportation Differences

The Complete Guide to Logistics and Transportation Differences

Introduction

Have you ever wondered what the difference is between logistics and transportation? What kind of career opportunities are available in this field? Is it right for you? Here at Freightos, our goal is to make global trade easy, but we also want to provide resources for those who want to learn more about the world of logistics and transportation. Whether you’re just curious about how these industries work or considering a job in freight, we’ve compiled a comprehensive guide that covers everything from basic definitions and terminology to the different types of jobs within the industry.

What is the difference between logistics and transportation?

The terms logistics and transportation are often used interchangeably, but there is a significant difference between them.

Logistics refers to the entire process of getting a product from point A to point B—from manufacturing to distribution, warehousing, and delivery. Transportation refers only to the actual movement of goods from one place to another.

Logistics is concerned with planning and control over this whole process. It includes such things as inventory management, production planning, material handling (such as packing), storage planning, and forecasting demand for products or services.

Distribution or Delivery

Distribution or Delivery

The last step of the logistical process is delivery, which involves physically moving a product from one location to another. It’s also known as distribution. This can be done through several different methods, and each has its advantages and disadvantages.

The Logistical Process

The logistical process consists of the following steps:

  • Planning. This step is where you decide what you want to do, where and when to do it, how much of it there should be, and who will be involved in doing it.
  • Sourcing. Sourcing is the act of finding suppliers for all your materials and services. For example, if you’re making a t-shirt with a custom design on it, then sourcing would include getting that design made by an artist or designer (or designing your own), buying fabric from a fabric supplier, and hiring someone to sew up those shirts for you—all before distributing them!
  • Transportation. Transportation refers to moving items from one location to another using trucks or trains or airplanes; this includes both domestic shipping within your country as well as international shipping across borders between countries (though there may be some differences between these two types).
  • Processing. Processing refers specifically to turning raw materials into finished goods through manufacturing techniques such as injection molding plastic parts into toys or stamping metal parts into screws etcetera; this step also covers packaging those parts together before distributing them further down the supply chain later on down our list here too!

The Types of Transportation Services

To navigate the logistics and transportation industry, one must have a solid understanding of its many players. There are many types of transportation services out there, and choosing the right one for your business can be daunting. In order to choose the right type of transportation service for your company’s needs, you first need to understand what those options are.

The most common types of transportation services include:

  • Air freight- This includes moving goods by air from one location to another; it does not include any customs or border clearance fees. It is also referred to as air cargo or air freight.
  • Sea freight- This involves transporting goods using ships or barges across bodies of water such as oceans and lakes within international borders without paying customs duties/fees on goods entering that country’s territory (again, not including local taxes).
  • Road freight- Moving goods via trucks over land instead of water bodies like seas and oceans is known as road freighting (or simply road cargo). For example, if someone were traveling from Los Angeles back home after their summer vacation in San Francisco while carrying souvenirs they purchased during their stay there with them…this would be considered an example case involving road cargo delivery services!

Air cargo vs sea freight vs road freight vs rail freight?

What are the types of Logistics services?

There are a variety of Logistics services available to choose from.

  • 3PL Logistics: Third Party Logistics, or 3PL, is a type of logistics service whereby a company contracts another company (a third party) to handle its transportation and distribution needs. Third-Party Logistics providers typically offer warehouse services and supply chain management, as well as other value-added services such as freight consolidation/integration and freight auditing/inspection. Companies can save money by outsourcing their transportation needs; however, this may come with some drawbacks such as decreased control over the shipping process or loss of customer loyalty when it comes time for fulfillment on an eCommerce site like Amazon Prime.
  • Now or Walmart Grocery Delivery where consumers expect immediate delivery without delays in service due to long supply chains that involve multiple parties before reaching the end user at home which means extra fees could be added onto their total bill price depending on how many steps there are between each step within each process step itself so make sure you consider all aspects before making your final decision about whether you want someone else doing all these dirty work for you!

The difference between logistics and transportation is that logistics focuses on the planning of how to get a product from point A to point B, while transportation focuses on the actual movement.

The difference between logistics and transportation is that logistics focuses on the planning of how to get a product from point A to point B, while transportation focuses on the actual movement.

Logistics is often used as a broad term to describe the entire supply chain process. However, it can also be used more specifically in reference to those processes that occur after manufacturing and before distribution. For example: “I have some paperwork for you regarding our current logistics system.”

Transportation refers specifically to moving goods or services from one place to another over land, water, or air. It may include warehousing along with delivery services like trucking and shipping companies (e.g., UPS).

Conclusion

We hope that you found this article helpful and that it has solved your questions about the differences between logistics and transportation. These two terms are often used interchangeably in the industry, but there is a clear distinction between them. We have shown you how they both play an essential role in the supply chain process, what their different functions are within this system and some of the services they provide to businesses around the world. The next step is up to you: now that you understand these concepts better than ever before, it’s time to explore new opportunities for your career or business!

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