What Is the Difference Between Transportation and Logistics?

24 Jul What Is the Difference Between Transportation and Logistics?

Transportation and logistics are commonly seen as two different terms for the same service. However, there is a significant difference between the two services as they form different aspects of the supply chain. It’s important to differentiate between the two to ensure that you are selecting the right service for your needs.

What is logistics?

Logistics encompasses a wide range of things that help with planning the storage and transportation of goods and services.

Essentially, if you are seeking logistics services, you are looking for a company to manage a large chunk of your supply chain. Logistics will look at how to create a system that allows for the best storage and transportation of any goods. It begins with the source of the goods and ends with the point of consumption. Good logistics management services will ensure that your customers get their goods as quickly as possible, without it costing them or you a fortune.

There are so many different elements of logistics that a lot of people don’t recognise. It’s common to assume that logistics is all about transporting things where they need to be. However, you also look at identifying suppliers, distributors and so on. The term actually stems from the military, where it was used to refer to how military personnel acquired, kept and moved their supplies. Nowadays, it has taken on a more universal use when looking at the business sector.

The simplest definition of logistics is that it is how items are handled and moved along the supply chain.

What are transportation services?

On the other hand, transportation services relate to moving goods from one place to another. The focus is purely on how you get the goods from A to B as swiftly as possible. This can be done via road, air, sea, etc.

Compass Transport offer transportation services, meaning we can pick up your goods and move them anywhere. We typically serve Brisbane, Sunshine Coast, and the Gold Coast, but are open to venturing out further if required. The purpose of our transportation services is to use our truck to deliver your goods wherever they need to be.

Good transportation services will know how to get goods from A to B with the utmost efficiency. This means planning out the best routes and understanding the best times to transport goods. The best services will also have the means to transport as many items as possible in one shipment.

What is the difference between logistics and transportation?

After looking at the two definitions, you can already see where the main differences lie.

Transportation is basically part of the overall logistics service. However, logistics also looks at other things – like the storage of goods, packaging, and warehouse management. You can think of logistics as a service that basically helps you manage the entire supply chain. With transportation, you’re getting a service that focuses on the delivery of goods from one place to another.

As such, the two services work together to ensure that your supply chain functions efficiently. Logistics management services are the brains behind the whole operation. A lot of analysis is done to figure out the best way of handling everything. It looks at finding the best places to store goods, how to speed up order processes and packaging, and then how to get the goods out to consumers.

If logistics is the brain, transportation is the muscle. Transportation services do the legwork to get things where they need to be. This is why it is crucial to understand the different services depending on your requirements.

Businesses with an existing supply chain network may require a company to deliver their goods from one location to another. If you have already taken care of the storage of these goods, you will need transportation services. However, if you are keen to get help with the storage of your goods and the development of a supply chain, you’d need logistics management services instead.

Contact Compass Transport for transportation services

In summary, there is a big difference between logistics and transportation. Logistics looks at the bigger picture, while transportation focuses on moving things from one place to another. If you are interested in working with a transportation company that delivers across Australia and provides same-day delivery options, contact us today. We ship things overnight as well – so call or email us for a free quotation or to book your shipment.