What’s the Difference Between Shipping and Logistics, and Does It Matter? –
When it comes to shipping things whether its freights or cargo, you’ll hear the terms “shipping” and “logistics” a lot. What, though, is the distinction between shipping and logistics? Which one should you be considering for your company? The answer isn’t as straightforward, but there are a few major distinctions that can make shipping easier or more difficult depending on how you go about it.
Understanding the Distinction Between Logistics and Shipping
When it comes to shipments, there are two words that are frequently used. Shipping and logistics are two of them. So, what’s the distinction? Which one should you be considering for your company?
What is the distinction between logistics and shipping?
The answer is that shipping is the process of transporting products from one point to another, whereas logistics services are much more complicated and involve many moving parts. It’s critical for business owners who frequently ship items or engage with third-party logistics providers to grasp the difference so they can identify ways to cut shipping expenses, which will boost their bottom line!
Definitions and Optimization Tips for Shipping Logistics
What is the definition of shipping logistics? The term “shipment” refers to the item you want to ship, whereas “logistics” refers to the process of transporting your shipment from its point of origin to its final destination.
The art of transferring commodities, products, and raw materials across great distances with precision is known as shipping logistics. While shipping and logistics are two concepts that are sometimes used interchangeably, shipping exclusively refers to the transportation of goods. The supply chain encompasses actions such as ordering, purchasing, forwarding, and warehousing, which are all part of logistics.
While product transportation is critical, there are additional elements that firms must consider to ensure that everything runs properly. Shipping logistics also necessitates procurement, storage, and freight transportation!
Management of logistics
The process of planning, implementing, and controlling an efficient flow of commodities while also ensuring that customer needs are met is known as logistics management. It’s an important part of any shipping process. It considers the time and cost of delivering things, and it has an impact on many aspects of our life beyond the shipping we’re all familiar with.
In a nutshell, shipping is the movement of products by freight. And logistics is a more general phrase that refers to the full transportation process.
Supply Chain Management vs. Logistics
Logistics services are the integration and maintenance (storage system) of items in an organization, to avoid sounding too repetitive. The coordination and management (flow and movement) of a comprehensive supply chain activity is known as supply chain.
What is the significance of logistics?
Because shipping and shipping costs can account for a major portion of a company’s bottom line, logistics are vital to both large and small firms. By boosting distribution efficiency, delivery accuracy, and customer service, a well-designed and streamlined logistic management system may boost sales and profitability.
Shipping efficiency also means less time waiting for customers’ items to be delivered out and greater responsiveness when customer care issues emerge for firms with an eCommerce site. For larger international organizations with offices all over the world, more efficient shipping means lower fuel and freight expenses, as well as lower damage rates, compared to when there is no logistics management plan in place.
The correct shipping management solution can also aid with inventory control by allowing for improved demand forecasting, allowing shipping resources to be allocated to clients who don’t need to carry excess inventory. Logistics also aid in the reduction of waste and compliance with government rules, making it easier for businesses to deliver goods on time and on budget.
Logistics management is significantly more efficient at providing visibility into all elements of warehouse and shipping operations when the correct plan is in place. Operational costs such as product distribution mapping, real-time routing data and tracking, order fulfillment rates, and supply chain KPIs relating to sustainability and automation can all be controlled by managers.
What is the difference between the four categories of logistics?
Companies can export items using one of four methods of logistics transportation. Ship, truck, train, and plane shipments are also known as maritime, road, rail, and aviation shipments.
Shipping by sea and ocean
Ocean shipping is one of the most common modes of freight transport since it is one of the most cost-effective and time-efficient in the long run! Ships transport containers containing everything from food to clothing to automobiles and furniture across oceans.
Ground transit and trucking
Because it involves shipping items via road and highway systems, trucking is commonly referred to as “ground shipping.” Despite the fact that trucks consume more gasoline than planes and other types of transportation, trucking remains a preferred mode of transportation for shipping logistics.
Transportation by air
Shipments are transported by planes through numerous airports all over the world as part of an air transport service, often known as air freight. Depending on the distance of a product, this shipping method can take anywhere from one to three days.
Suggestions for improving shipping logistics
How much does logistics cost?
All of the costs associated with moving products are referred to as logistics costs. Purchasing raw supplies, warehousing, and delivering customer orders, as well as all other aspects of the shipping process.
How can shipping logistics expenses be reduced?
Examine your shipping carrier alternatives. Having the best shipping rates will help you save money on shipping logistics. Also, look into shipping carrier options for delivery times so you may receive the greatest possible delivery time without sacrificing shipping rates or methods.
Tip: Inquire about further discounts with your courier company’s customer service department. Alternatively, you can read our blog post about 10 Ways to Save Money on Courier Shipping.
Purchase the appropriate packaging for your products in quantity! Because you’ll have to pay a one-time price for all of the shipping materials up front, buying shipping goods in bulk saves money over time. Determine which container size is appropriate for your items and purchase accordingly.
Tip: You may print shipping labels at home or at work
Organize yourself. What is your present storage location for your goods? Is the arrangement logical? Or do you have a variety of components and pieces stashed in various locations? How much time are you wasting putting everything together? A well-organized space saves money on shipping logistics.
Tip: Conduct a product inventory to assess what you have and whether it’s worth storing in the future, or whether more storage is needed. Because you won’t be ordering as much from your supplier, you’ll be able to save money on shipping over time.
For both large and small enterprises, shipping and shipping operations are critical. It can be tough to reduce shipping expenses, but by following these guidelines, you should be able to do it. If there’s one thing that every business owner knows all too well, it’s that hidden logistics costs can eat into any profit margin, forcing owners to slash even more margins and save even more money just to stay competitive!
Find out about the different types of Los Angeles shipping services to know which one suits your needs.
Fortunately, SMEX 24/7 provides some of the most affordable and competitive shipping rates and logistics solutions for businesses wishing to get their hands a bit less dirty while still saving money by outsourcing these critical logistical responsibilities to a brand and company they can trust. Contact us for more information now.