Generally, there is a lot of difference between personal traveling and the difficult logistics of getting from one point to another. Travelling cannot be defined as getting on a plane and getting off from it. Commonly, people miss out on a lot of things when it comes to traveling. People don’t include the basic transport levels and means of getting to the airport like a personal car.
After getting done with all the traveling costs and expenses, it is time to know the reason behind traveling. Why was it necessary to get the ticket? What will be the work done at the end of the ticketing office? Are Logistics and Transportation Management the same stuff?
Transportation can be defined as moving animals, people, and goods from one point to another. The means of transport can be air, water, road, cable, rail, and space. Transportation can be divided into two parts; operations and vehicles. Transport is a necessity for building trading relations amongst people, which will, in return, establish a civilization.
The APICS Dictionary defines logistics as:
In an industry, logistics means producing, obtaining, and distributing material and products at the right time, at the right place, and in the right amount. In a military context, where it is used on a wider scale, it is also linked to army personnel’s movement.
The CSCMP takes logistics to plan, control, and use the transportation for effective and efficient use. It also includes the warehousing of goods and services and data from the starting point of origin to the ending point of customer demands. The definition can further include outbound, inbound, external, and internal movements.
The definitions stated above would have been clear to an individual that both have a different meaning on the academic level. Transportation is what drives the logistics, but logistics is the driver taking care of logistics. It is quite easy to look at things differently from the last sentence, which defines both terms.
Logistics need planning, and transportation is meant to execute the planning from one point to another. On a clear note, logistics and transportations are two different things, but it is right to state transportation as a subdivision of logistics. When talking about logistics, the professionals are required to take in the additional step to include in transportation, which are:
- Storage
- Packaging
- Insurance
- Containerization
- Cargo damage claims
- The responsibility of justifying expenses and explaining the risk
- Working with professionals in the supply chain
- Management of clients and vendors
- Import/ Export Regulations
- Documentation
Many professionals ignore the most crucial part of management, which is using the right software and it is a mistake often done by big and small businesses. The doom of the whole logistic management could be this simple mistake if it were not a part of the business plan.
Transportation management system software is necessary for every logistics department because it can see beyond an executive’s reach. A lot of outcomes and management can be handled through software out of an executive’s reach.
At times outsourcing logistics to professionals can result in greater benefits for a business. This helps manage the transportation system and helps build integrated services to handle accounting claims and develop custom cargo programs. Having a custom inbound cargo program will allow the logistics executive to have meaningful relations with other companies and supply chain professionals.
Instead of focusing on logistics and transportation details, a business should be focused on delivering results. As a business is focused on results, it can generate cost-effective ways of running operations at a much quicker pace.
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