The differences in logistics and shipping start with the nature of the work. Sometimes these two words are so confused that it seems that they are the same. In fact, cargo shipping and logistics differ in a number of functions.
Let's start with shipping. Shipping focuses on the methods of transporting goods by land, sea, and air. In other words, the method and process of transportation itself is more important here. In general, cargo shipping planning involves finding an efficient way of transportation. Other functions are cost-effective packaging, costs and product safety. Infrastructure and choice of vehicles are also important in freight services.
Logistics covers a wider range of activities that facilitate the management of the movement of goods in the supply chain.
Operations in the field of logistics include demand forecasting, export packaging, labelling. A separate section in this area is devoted to management, such as order management, inspection, transportation management. Logistics is also responsible for customs clearance, storage and distribution operations.
Thus, the logistics industry focuses on planning activities that will facilitate the easy management of cargo movement. Also, necessary data and documents are analysed for cost effectiveness in international trade.
In logistics, it is important to find ways of efficient storage and shipping of goods, which will make the shipping process as easy and comfortable as possible.
When planning the delivery process, logistics also takes into account the mode of shipping. Because based on it, the main costs, terms of delivery of the load to the user, etc. are determined.
Logistics managers must also make decisions based on packaging, containerization, documentation and insurance, import and export, regulations, and shipping damage. They also handle work and collaboration, claims, vendor and partner management, and risk mitigation.
These factors mainly determine the differences between logistics and shipping. Thus, shipping is the movement of goods and logistics is the management of the inward and outward movement of goods from the producer to the final consumer.
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