Transport vs Logistics – Is there a difference?

Many people believe that there is no difference between transport and logistics. They say logistics is just a fancy word for transport. Others are confused, saying that transport is part of logistics, while others think it is the other way round. Where do you fall? By the time you are done reading this, you will have a clear understanding of the two in depth and how they fit into the supply chain. 

Let us begin with the simple definition before going into the details. You should, however, understand that even though they are different, the words are used interchangeably. Here we go:

Transport – is the movement of goods from one location to another.

Logistics – involves all activities that facilitate the movement of goods from the source to you, the end user. 

Whereas both deal with getting products and services from one location to another, logistics involves other activities like integration of storage, transportation, cataloging, handling, and packaging of goods. 

Logistics

Logistics, as a process, involves a lot of activities before the goods can get to the final user. It involves a lot of planning, and many decisions must be made before the goods can get to you. For example, our logistics manager has to determine one or all of the following, every passing day. She has to determine the best and safest way to get the goods to a client based on packaging, containerization, documentation & insurance, storage, import & export regulations, and fragility of the package. At times, especially when working with clients new to shipping, she has to handle claims, manage vendors & partners, and take risk mitigation measures.

Transport

Transportation, as mentioned above, involves moving goods or services, people, and animals from one location to another. This may be by rail, road, air, sea, cable, space, or pipeline. Transport is an integral part of logistics as it merges all other activities involved in the logistics process. For an importation process to be successful, different modes of transport have to be employed depending on the needs and budget of the client. Transport, combined with customs clearance and storage, is a simplified definition of the logistics process. 

A good transport t services provider should be able to advise you on the following: 

1. Cost-effective ways to have your cargo delivered
2. The best delivery route
3. Closely estimated delivery timelines 

How to know a logistic service provider will deliver

The best and obvious way to know whether a logistics company will deliver is to ask around. It sounds simple, but it is a time-tested model. The closer the testimonial is to your industry, the better. But if you can’t find a reliable referrer to ask, you can do the next best thing. Assess how well they are organized. We have prepared a checklist of five things we feel are essential before engaging a logistics partner. 

Planning

Always find out if they have plans and structures for handling different projects. Lousy logistics service providers lack proper planning, leading to unnecessary delays, loss, or damage of goods. An experienced logistics service provider knows what activity precedes the other. This means they can give you a schedule, a route map, and estimated delivery timelines. 

Relationships Management

The first interaction with your logistics service provider should give you confidence in their capabilities. If you can find a client they have served, ask how frequently they communicate when a shipment is in motion. Also, find out how they handle a crisis, like when a container is missing. Lastly, find out how many long-standing clients they have…I’m sure you know why!

Warehouse Management 

Good warehouse management narrows down to the skill level of the personnel at the warehouse. Of course, the warehouse facility matters; you may want to know their provisions for handling fragile goods, explosive material, or perishable goods. However, with inexperienced personnel, even the most basic things could go wrong. Ensure that their staff is well trained on special activities like packaging, assembling, labeling, and removal services, among other skills that may come in handy when time is of the essence.

Coordination

A well-organized logistics firm should work like an automated system. This means every step of the process should be anticipated, and the personnel involved be in place to ensure a smooth flow of operations. For instance, you should not have to pay extra storage costs because there are no available trucks to load your shipment. 

Technology

Choose a logistics company that keeps up with the latest technological solutions that support efficiency in service delivery. For instance, we have invested in the latest tracking software to give our clients frequent updates on the progress of their shipments while on the road. Good technology also assists in the coordination of activities as every person on the team knows what is expected of them at any given time. 

Do you have any questions about the logistics process? Let us know via call or direct mail, and we will address it satisfactorily. Also, please opt-in to our mailing list by filling in the pop-up menu with your email address. We will be sending you helpful information on logistics and transportation.