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Are There Any Differences between Logistics and Distribution from PAL Line's blog

From a distance, people might think that logistics and distribution works are the same, where both involve in transporting goods, there are a few differences. But anyone, who works in the transport and logistics business, they can tell you that these two aren’t the same at all. But, yes, we cannot turn our back to the fact that logistics and transport has a lot of things in common too.

 

Here in this article, we are going to discuss both, the logistics and distribution separately, rather than coming to their differences.

 

Logistics

 

Logistics is widely known as the process of taking picking up products from the seller and delivering them safely to the customer. Logistics services deliver several types of goods to their destination, such as

 

  • Food
  • Liquids
  • Inventory requirements etc

 

Logistics is actually a term used widely in the military, which includes

 

  • Obtaining goods
  • Storing the goods at a safer location
  • Moving them to their final destination

 

In much simpler words, through logistics, the goods travel from their source of origin to the source of consumption. The whole process of logistics goes through several processes, such as

 

  • Integration of the picked-up products
  • Packaging according to their needs
  • Storing goods at a warehouse
  • Seller to consumer transportation
  • Goods security
  • Handling materials

 

Logistics are available in different categories and each category serves different purposes. Let’s know the name of the categories,

 

  • 3rd party logistics
  • 4th party logistics
  • Inbound and outbound logistics
  • Military logistics
  • Reverse logistics
  • Construction logistics
  • Digital logistics
  • Green logistics


 

Logistics management

 

The main goal of the logistics companies is to create a supply chain, which includes planning, implementing and controlling an efficient flow and reverse flow of goods. As mentioned earlier, this process happens between the points of origin, where the product was made to the point of consumption, where the product will be used. The main reason the manufacturing companies choose logistics services is that they are well acquired with all the national and international laws of transportation, such as LCL shipment charges or container shipping rates, etc. Also, the logistics companies provide assurance of safe goods handling and after picking up the product from the point of origin, it is their responsibility to deliver the products to the consumers. 

That is why logistic management is a crucial responsibility and failure to complete the loop means losing the trust of the manufacturing companies. These days all the logistics companies use all the latest gadgets to stay up to date while keeping their customers up to date too.

 

Distribution

 

In a way, distribution is also a part of logistics, where it keeps track of the goods from the supplier to the point of sales. When we mentioned the warehousing, packaging and inventory management earlier, it is the part of distribution processing. 

Though a part of logistics, here let’s talk about the difference between logistics and distribution process.

 

Differentiating logistics and distribution

 

When you will talk about logistics, you will think about the freight management process, transportation of the goods and the overall planning. The logistic includes,

 

  • Suppliers
  • Distribution lines
  • Logistics service providers
  • Customer satisfaction on both sides

 

The whole process of distribution includes,

 

  • Get the receipts of the products from the suppliers
  • Warehouse and internal safe handling of the product
  • Direct the goods on their given address
  • Deal with the returned goods

 

So, if you evaluate all the points very closely, you will find that the distribution part is completely aligned with the process of logistics management.


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By PAL Line
Added Mar 16

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