How Transportation and Logistics Management are Different?

1. How Transportation and Logistics Management are Different? People often use transportation and logistics management in the same sense, but the truth is that both are way different from each other in terms of complexity. The transportation industry is much smaller in terms of size and scale as against the logistics industry. Where transportation is only concerned with the movement of goods from point A to Point B, Logistics Management includes the proper planning, procurement's, storage, transportation and distribution of goods. They both play a major role in making or breaking businesses. What is Included in Transportation? Transportation in general sense can be defined as the movement of goods and other essential materials from one place to another. It includes the movement of raw material from suppliers to manufacturers and finished goods from factories to customers. It also includes the shipment of parts to various assembly areas. Other things being constant, the transportation cost mainly depends upon the distance and means of travel chosen by the business. Every business owner wants to minimise the transportation cost along with meeting the customers' needs and demands.

2. What is Included in Logistics Management? Logistics Management is the process of planning, controlling, implementing and reviewing various supply procedures for effective and efficient transportation and storage of goods. Logistics Management helps in getting the right products delivered to the right customers. It includes keeping a close eye on transportation, storage, and distribution of goods. With the help of proper planning and execution, logistics management helps the businesses to grab market share by increased customer satisfaction. It carefully analyses the supply chain functions and makes the required changes thereof. Usage and Importance of Transportation for a Business Transportation acts as a link between producers and consumers. It links the various factors between them. The main aim of transportation is to judiciously utilise the geographical resources of the area so that economies of scale can be achieved. A business needs to carefully operate its transportation system by optimising its benefits and minimising the time and cost involved. Usage and Importance of Logistics Management for a Business Effective Logistics Management ensures that all the products are delivered safely and economically to the customers. Carefully planning and implementation leads to cost-efficient operations and more satisfied customers. The logistics management process includes both inbound and outbound logistics. In inbound logistics, the movement of raw materials, parts, assembly products from suppliers to the manufacturing unit is performed for further processing. Outbound logistics includes moving the goods out from the factory, on time packing, and distribution of these produced goods to the customers. Final Thoughts If you have read the above piece of the article, then you will be quiet clear until now that how transportation and logistics are different from each other. Logistics Management assists the businesses worldwide in transportation, along with many other functions like procuring the material, storage, and distribution. On the other hand, transportation refers to the movement of goods and raw material from one place to another only. Transportation links together various factors of production to create a relationship between manufacturers and customers.