What is the Difference Between the

Logistics Industry and Transportation?

Posted under Logistics Management by Helen Sabell on Wednesday, 23rd March 2016

The logistics industry is much broader than the transportation industry. While transportation
focuses on the movement of goods from one place to the other, the logistics industry
implies a broader spectrum and refers to the whole ‘flow’ management. This includes not
only the transportation and delivery of goods but also the storage, handling, inventory,
packaging and various other aspects. So, what are the main differences between the
logistics industry and the transportation industry?

Transportation is a function within the logistics industry operations. It is focused purely on

the definition and deployment of transportation modes, such as sea, road and air. It is also
important to differentiate between logistics and the supply chain. The supply chain refers to
the entire value chain from the suppliers to the end customer, including after sales services
and reverse logistics (recycling).

Transportation
Transportation is defined as the movement of people, animals and goods from one location
to another. These modes of transport may include air, rail, road, sea, cable, pipeline and
space. This field is divided into infrastructure, vehicles and operations. Transport is crucial
as it enables trade and communication between one another, which ultimately establishes
civilizations.

Logistics
The logistics industry can be defined as the science of obtaining, producing and distributing
material and products to the correct place and in the correct quantities. In a military sense,
where it has a greater use, its meaning also includes the movement of personnel. Logistics
includes the process of planning, implementing and controlling procedures for the efficient
and effective transportation and storage of goods. This includes services and related
information from the point of source to the point of consumption for the purpose of fulfilling
and conforming to customer requirements.

What is the Difference?

Logistics requires planning, whilst transportation is the mode to execute the planning when
freighting goods from point A to B. They are not the same thing but transportation is just
simply a part of logistics. When it comes to the logistics industry, logistics executives must
make further decisions beyond the mode of transportation to include:

 Packaging
 Containerisation
 Documentation
 Insurance
 Storage
 Importing and Exporting Regulations
 Freight Damage Claims
 Working and collaborating with other executives within the supply chain
 Managing vendors and partners
 Responsible for risk mitigation

New Technologies
The advancements of new technologies and improved business processes have had an
enormous impact on transforming both the logistics industry and transport industry.
Technologies have allowed real-time monitoring of flow and resources, transparency across
multiple points and the seamless exchange of operational information with key performance
indicators that have had a profound impact on the industry.

In this highly competitive market both information and physical products must move with
efficient speed and at lower cost, paired with improved service. Successful supply chain
management and logistics are often the difference between surviving and flourishing in the
current marketplace. Upon improving the supply chain will see immediate benefits in terms
of lower costs and optimised delivery.