Entrepreneurs must understand the difference between logistics and transportation to make their businesses successful. While both are important, they serve different purposes, and it is essential to know which type of business you would like to start. This article will help entrepreneurs do just that.
What is Logistics?
Logistics is the coordination of the movement of resources between two points. It includes planning, implementing, and controlling the efficient flow and storage of goods, services, and related information from point of origin to point of consumption to meet customers’ needs.
What is Transportation?
Transportation is the movement of people, animals, and goods from one location to another. It includes using planes, trains, automobiles, and other forms of conveyance to move goods and people.
The Difference Between Logistics and Transportation
Logistics is a branch of transportation. Both logistics and transportation are required to move people and goods from one place to another. However, there are some critical differences between the two.
Logistics is more focused on the planning and coordination of the movement of resources. Transportation is more concentrated on the actual movement of those resources.
Logistics also includes storage and handling of goods, whereas transportation does not. And finally, logistics is concerned with both domestic and international movement of resources, whereas transportation is typically only concerned with domestic activity.
How Can Logistics and Transportation Work Together?
Logistics and transportation work together to get goods and people from one place to another. Logistics coordination typically comes first, to determine the most efficient way to move goods or people. Once that determination has been made, transportation can then execute the plan.
Logistics and transportation are important for moving goods and people from one place to another. However, there are key differences between the two. Entrepreneurs must learn and understand these differences to know which type of business they’d like to start.