Logistics and transportation are often quoted together but also mistaken for each other. Do you really know the definition and the missions of each of these sectors of the supply chain?
Fed Supply, a transport and logistics recruitment firm, tells you more.
What is the definition of logistics?
Logistics, in its purest sense, is about the methods and organization of a process. The origin of the word comes from the Greek, logistikos, which means "art of reasoning" or "related to reasoning". This implies a real notion of reflection.
If we now relate this definition to the business sector, logistics would be defined as the set of operations and resources necessary for the proper management of physical flows. The goal is to reach the customer from the suppliers according to defined regulations, following a logical and proven reasoning to minimize economic losses.
In reality, transportation is only one component of logistics. It is only one part of the definition of the supply chain!
What is the difference between logistics and transportation?
Logistics encompasses all the practices and planning it takes to get the product to the customer. Transportation is only one of those practices, getting the product to the point of sale or to the customer.
In short, transportation is part of the execution of a logistics plan. It is a service that is part of a sequence of activities implemented to achieve good coordination.
What are the missions of logistics?
Logistics is crucial for a company, as it is what connects the flows between them, and allows for increased performance or not. The jobs in logistics and transportation all interact together to contribute to a succinct harmony and thus promote the objectives of these sectors.
We could define the missions of logistics as follows.
1. Optimization of physical flows
The goal is to achieve the most savings on a complex machinery, so that there is the least amount of waste, both for the companies and for the end consumer's waiting time.
This means defining precise schedules for production, delivery, distribution and anything else that might be relevant to the smooth running of the supply chain. The goal is to avoid any disappointment both upstream and downstream.
2. Coordination of services
Once the purchases have been made, the customs clearance has been completed, the goods must be received, sorted, stored, prepared, shipped, etc.
The good thing about logistics is that it enables the coordination of these different services through a well-functioning communication. This allows everyone in the supply chain to work together seamlessly. The logistics manager plays a big role in this.
3. Cost control
One of the main missions of logistics is to efficiently reduce costs related to services, warehousing, storage of goods, final transportation to the point of sale or to the consumer.
The aim is to save expenses, time, and manpower, always in order to be as efficient as possible.
4. Provide the best possible service to the end consumer
Providing the best possible service is achieved through efficient customer relationship management and quality after-sales service. Building customer loyalty is an excellent long-term way to increase sales.
Recruit or find your job in transport and logistics with Fed Supply
Fed Supply assists both applicants for logistics jobs and recruiters in their search for an employee for their company.
You can send us your spontaneous application or entrust us with a job: we will be delighted to assist you.
