Transport Logistics And The Supply Chain
Transport logistics is a piece of the supply chain. So it is the part of the supply chain where we are moving something. We are moving something from point A to point B or from many points or even pooling a bunch of stuff. But it is the fact that we are moving something is the transport of transport logistics.
There are other parts of logistics too and other parts of the supply chain that are super important. But right now, we are going to focus on the transport piece of that.
So transport logistics, as I said is when we move something. Let’s say we are moving that on a flatbed, or moving it on rail, through the air, the ocean, international, or domestically. It doesn’t matter where or how we move it. Transport logistics is about moving freight from one place to another. Even if that means with many products.
How Transport Logistics Is Being Used
So we can use transport logistics for both inbound and outbound. So the transport logistics and the moving of those products, we have to do it for both ways. It depends on what our facility is. For example, we are a reseller and we have a warehouse. The transport part of that logistic is inbound. We are going to be bringing in pallets or trucks of product. Then we are going to organize those in our warehouse and our fulfillment center. Now, that is a different part of the logistic supply chain.
Then on the outbound side, we have more transport logistics. This is where we are packaging these up into small boxes and sending them out using UPS or FedEx. So they are coming in trucks, which is one part of the transport logistic. Then they are going out in small boxes and still on a truck. But, their final destination will be to a consumer. So that is another piece of transport logistic.
Even More Things You Can Do With Transport Logistics
So then transport logistics can get a little more complicated. This is because we can do things like pool distributions. This is where we are moving a bunch of products into one place and then distributing them out from there.
For example, when I was talking about a small parcel when leaving the facility. We are sending all the UPS packages out on one truck once a day. But then UPS, in this case, is going to bring them to one of their facilities. The facility is a pool distribution center. Now, they are going to break those up and send them to other distribution centers. Next, they drive them as a group to that next location. That is transport logistics.
Transportation Versus Logistics Management
The difference between transportation and logistics is their part of the supply chain. Logistics management can also include warehousing and managing things in the warehouse. Whereas transportation management is about facilitating the movement of the product.
Transportation Logistics In Action
So for example, in the domestic US, we deal with a lot of 3PLs or transportation logistics providers. The sole purpose of those providers is helping to start the transportation of goods.
Now without transportation logistics, we would have somebody else do the warehousing piece. But in the transportation let’s say we are doing a full truckload. There are thousands and thousands of small truckload carriers throughout the United States. Some of these guys only own three or four trucks or could even be a 20 truck fleet.
Smaller fleets have availability but finding that availability requires expertise. They need to be able to nail down that availability and negotiate with those carriers to get the best rates. This way we can make sure they move the product the right way. It’s important to make sure they have insurance also. That is where the transportation management provides a tremendous value to organizations.
Logistics Management Defined
Now logistics management expands on that a little more. So sometimes logistics management could include the transportation piece. Sometimes it is the warehousing piece, or sometimes it is other parts of the supply chain. It depends on the specific needs and how logistics management is being used.
So transport logistics, transportation logistics, and supply chain are different in scope. Transport and transportation logistics are about the movement of the product. Whether that is inbound or outbound, it is about moving products from one place to another. It doesn’t matter whether those cross borders, stay domestic, or air, land, or sea. It doesn’t matter how they are being transported. Transport logistics is about the movement of products.
About The Supply Chain
The supply chain is a much bigger term. The supply chain is about managing the business and it is a lot more of a business-oriented term. In supply chain, we have to consider things like warehousing and transport logistics. We have to consider our workflows for the manufacturing facility. For example, we have to consider the storage of products and seasonality. When thinking about the supply chain, we have to look at a much wider scope of events and activities.
Transport logistics matters right inside of there and at many points in the supply chain. Transport logistics happens many times inside your supply chain. This includes during transport of products to different facilities, or your customer. This could even be during transport to distribution or manufacturing facilities. Transport logistics matters at so many points in the supply chain.