Transportation is the movement of goods and logistics is the management of the inward and outward transportation of goods from the manufacturer to the end-user. Logistics and transportation deals with getting products and services from one location to another.
Types of Logistics
- Procurement Logistics: Procuring Raw Materials and Parts.
- Production Logistics: Materials Management, Distribution in Factories, Product Management, Shipping.
- Sales Logistics: Delivery from Warehouse to Wholesalers, Retailers, and Consumers.
In other words, the 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.
These are the four major modes of transport (or types) in the logistics industry which include:
- Road freight - This is a popular choice for transporting for all manner of goods across the globe. It’s particularly suited to situations where products are being transported across borders and for final-mile delivery to customers’ doors.
- Sea freight - Sea freight accounts for the vast majority of the world’s trade. More than 90% of all goods are transported by ships.
- Air freight - The go-to choice for speedy delivery. It’s accessible all over the world and a convenient method to move smaller shipments long distances. Given that most major cities have an airport, air freight also lets businesses ship to specific areas or regions.
- Rail freight - Trains are a vital part of logistics routes across the globe. It’s the ideal choice for organisations that require fast, scheduled and reliable freight in areas of the world where rail networks are strong.
Transportation logistics is exclusively about managing material as it moves through the supply chain. This is directly related to how freights are hauled. Whether it's via truck, through the air, or by boat, this distribution model helps ensure all goods are being transported safely and efficiently.