Shipping and logistics play an essential role in a business transporting physical products. According to Statista, in 2020, the worldwide logistics market value was around USD 8.6 trillion. However, people often use the terms shipping and logistics interchangeably, although they differ.
It is essential to understand the distinction to gain clarity on your profitability and help with planning. This article will help you know the difference between shipping and logistics and enable you to make the right decisions.
What is Shipping?
Understanding shipping is simple, as it involves transporting goods from one location to another. There are various methods involved in transporting goods from origin to destination, depending on the nature of the goods. Shipping companies use land, air, or sea to transport goods and focus on getting them to the right destination.
An example of this is getting goods to grocery stores. Supermarkets typically rely on several distributors to fill their shelves. These distributors use food grade warehousing to keep their goods in a climate controlled environment before it is shipped out. Once ready for distribution, goods are put on trucks in pallets and sent out to stores to restock their products.
Do you have freight that requires urgent delivery? Utilize expedited shipping as it is the most suitable shipping option for fast transport.
What is Logistics?
Logistics is the process and activity involved in ensuring the production, purchase, storage, packaging, etc., of goods. Unlike shipping, which is simple and direct, logistics is more complex as it involves several processes, including transport. Logistics involves many intricate aspects of products and contributes to smooth supply chain management.
Therefore, proper logistics is vital to keeping small and large business operations running at minimal cost by improving their inventory. Logistics oversee the whole process from packaging to warehouse to enable companies to realize their objectives and goals.
What is the Main Difference Between Shipping and Logistics?
The main difference between shipping and logistics is their expansiveness and scope. While shipping is a straightforward process that entails the physical transport of goods, logistics operate on a larger scale. Shipping may involve moving products from a warehouse to a customer. It also requires documentation, tracking, and delivery of goods, ensuring they reach their intended destination in proper condition.
On the other hand, logistics management ensures the management of the goods. Logistics ensure that all processes run flawlessly, from the warehouse to inventory to packaging to the purchase of the products. Shipping is one process, while logistics integrates different systems, including shipping, to streamline the supply chain. Despite the differences, business owners should leverage shipping and logistics to maximize profits.
What’s the Bottom Line?
Shipping and logistics are two different aspects of transportation, but both increase efficiency. Shipping is the process of transporting commodities from one location to another using various methods, such as land, air, sea, and pipelines. Although shipping is essential, logistics is a broad subject with more significant roles.
Effective logistics are coordinated, thus enhancing inventory management and controlling a company’s bottom line. Logistics manages the handling, insurance, storage, packaging, freight claims, and transport of goods at the right time.
Hire the Experts at Somerset Logistics
Managing shipping and logistics, plus other business areas, has its challenges. Whether you’re new or a veteran, getting the right logistics company will propel your business to success. Luckily, Somerset Logistics Company is a dependable, customer-focused freight brokerage and third-party logistics company with years of industry experience.
Our services include truckload, expedited, temperature control, LTL/Partial, and over-dimensional. Our dedication to handling customer relationships with the utmost respect, honesty, and professionalism has established us as a reliable logistics partner. Leverage our services to improve your customers’ convenience and satisfaction.
Contact us today and boost your customers’ experience.