Transport logistics is a popular term, though one that is not especially well defined. In this article, we are going to break down the terminology for a better understanding, and then focus on the main components of the transport & logistics industry, including supply chain, so that we can deliver a thorough overview of what “transport logistics” truly means. Read through our whole article or you may skip to the part you need.
- What Does Transport Logistics Mean
- Looking at Transportation and Logistics as a Metaphor
- The 7 R’s of Logistics
- Transport VS Logistics
- Getting the Most Out of Your Transport and Logistics Services
- Frequently Asked Questions
Transport as we know, is to take or move goods from one place to another by means of vehicle. It is the physical or ‘kinetic’ function of the supply chain.
Logistics is the detailed coordination of a complex operation involving many people, facilities, and supplies. So, it is the lubricant in the supply chain that enables it to keep running smoothly.
The combination of the two includes everything from sourcing and manufacturing, straight through to the final delivery (and everything else in between). But as stand-alone components, they are quite different indeed.
The use of metaphor is always an effective way of helping people to better understand a concept, which is why we are going to use one today to describe transportation & logistics.
Think of transport and logistics as going on holiday. You need to figure out the most effective means of getting from your home, to the poolside abroad.
- You could catch a plane, although you must consider the cost of flights. If you don’t wish to lay over in another country in “People warehousing”, and catch two separate flights, a direct flight is going to cost you more.
- You must also consider the personal restrictions that come with flying. For example, if you’re a pregnant woman after 36-weeks into your term, it will not be safe for you to fly, so another mode of transportation will be required.
- What about the train? It’s cheaper, but it will invariably take longer, especially with everyone else getting off at various other stops—not so dissimilar to LTL (less-than-load) truck delivery.
- Then there is the administrative factor. How much work goes into arranging your transportation? What about once you touch down in the country, how will you be getting to your hotel?
This should demonstrate the complexity of transportation and logistics, and just how much goes into it. Let’s have a look at the 7 R’s of logistics, for further analysis:
The Transportation and Logistics industry is built upon 7 R’s as listed below. Be sure to check out the next few blog posts by Transportify, where we will be exploring these in greater depth.
1The Right Product: What should you be selling? Will the products be safe and appropriate for mass distribution?
2The Right Quantity: What are your optimal production levels? Can you meet the demand / is there enough?
3The Right Condition: Will you be able to deliver the perfect condition to your customers?
4The Right Place: How easily can you deliver said products to the right place?
5The Right Time: Are you able to meet the increasingly high demand of speed on delivery?
6The Right Customer: Who is the ideal customer?
7The Right Price: With all of these combined, how much is it going to cost, end to end?
Here’s another metaphor for you: Look at Transportation as the driver, and logistics as the vehicle itself. Transportation is simply the mode to execute the planning, moving the product from A to B. Logistics on the other hand, makes it all possible, factoring in the following:
- Product packaging
- Documentation & insurance
- Storage (warehousing etc)
- Regulatory rules (importing & exporting)
- Choosing the appropriate freight class (TL / LTL, etc)
- Managing & maintaining vendor and partner relationships
- Risk mitigation
With all of that in mind, the logistics ‘vehicle’, allows the transportation ‘driver,’ to deliver the goods to the desired destination, on time, and in the appropriate condition.
It is not uncommon for businesses to outsource their transportation needs, whilst managing the logistics aspect in-house—and vice-versa. However, most modern businesses are now looking to simply outsource all transport and logistics services needs to one third-party partner, for the sake of saving time, and money,
With supply chain management, route-mapping software, and a wealth of lasting relationships with the appropriate international regulatory parties, it’s almost always so much more beneficial to use a dedicated third-party, as opposed to involving the entire functionality within your own business.
For businesses that are highly dependent on delivery features, understanding how to maximize your transport and logistics services can get you far in the competition. And one key for success in transport and logistics services is identifying the middle ground between efficiency and cost. And only the biggest and successful companies are able to understand these. Below are our tips on becoming successful in the transport and logistics services delivery industry. Refer to the table below for a quick reference for our services.
|Column 1||Column 2||Column 3||Column 4|
|Vehicle Type||Cargo Dimension||Capacity||Base Price|
|Economy (Sedan/Hatchback)||L: 3.5 ft|
W: 2 ft
H: 2.5 ft
|Economy Extra Space (SUV/MPV)||L: 5 ft|
W: 3.2 ft
H: 2.8 ft
|L300/Van||L: 7 ft|
W: 4 ft
H: 4 ft
|Pickup Truck||L: 10 ft|
W: 6 ft
|Pickup Truck Extra Space||L: 14 ft|
W: 6 ft
|Closed Van (4W)||L: 10 ft|
W: 6 ft
H: 6 ft
|Closed Van Extra Space (6W)||L: 14 ft|
W: 6 ft
H: 6 ft
|Long Pickup Truck||L: 18 ft|
W: 6 ft
|10-W Wing Van||L: 32 ft|
W: 7.8 ft
H: 7.8 ft
|Reefer Truck||L: 14 ft|
W: 6 ft
H: 6 ft
|Mini Dump Truck||L: 10 ft|
W: 6 ft
Minimizing Transportation Costs
One of the simplest things to minimize your transport and logistics services costs is to remove the unnecessary activities relating to it. Examples are looking for suppliers that are closer to where to process or manufacture your products. Another is being smart in your supply chain by consolidating shipments and reducing the number of trips the materials go through. Keep in mind that most of the parts you are eliminating are considered non-value-added labor cost.
Automate your logistics
Tracking your shipments is a necessity in the transport and logistics industry nowadays. It is important to know where your delivery is so that you as a manager can anticipate and decide fast on changes that are crucial to your operations. And having a record of the delivery tracking can help you identify the areas or problems that need to be addressed. Because timing is the most important factor in transport and logistics services.
Finding yourself a transport and logistics services provider
Transportify not only promotes itself as a leading logistics company, but the core competency of our services is to have your shipping costs in check. It is the role of Transportify to make sure that your business will make it to the destination safe. Most of our delivery services can be availed through less-than-truckload. But this is also your chance to maximize each shipment and save yourself from unnecessary transportation expenses.
If you are interested in exploring our transportation & logistics services, then please feel free to contact Transportify today, at your convenience.
What is transport logistics?
💫 Transport logistics is a combination of two important terms in supply chain management. By combining the two words, it means all the factors to consider from the starting point up to the end. Transport and logistics services like Transportify can help your business grow by providing you your trucking needs. With the most competitive prices in the market today, upgrade your business and get ahead among your competitors.
What is the difference between transportation and logistics?
💫 In layman’s term transportation is defined as the moving of products or services from one place to a desired location. While logistics is a broader term which is defined as the coordination of several processes and systems of people, facilities, and supplies. Both terms supplement each other especially in business processes. Transportify is one of your trusted transportation and logistics delivery services that can help your business reach its fullest potential.