Logistics and transportation are intertwined, though they aren’t the same thing. Whilst logistics refers to the entire process of the supply chain, transportation is just a part of that process — though it’s crucial to it. Without efficient transportation from A to B, the supply chain would break down, so pretty much all logistics planning involves the consideration of transportation.
How would you define “transport” and transportation?
In a supply chain, transportation is simply the movement of goods from one location to another.
As an example, one location might be the place where you source raw materials, or where you source goods from a manufacturing facility. We call such a location a node in the supply chain. There is then a series of such nodes or locations to finally get to the end customer.
Transportation is moving whatever comes out of one location to the next. That might mean transporting something from a manufacturer to a distributor, or from a distributor to a customer.
Whether you call it transport or transportation depends on which country you come from. In America, they tend to use the word “transportation” more, whereas in Europe, Australia, and other countries, we may simply say “transport”.
Transportation methods & services
Within the supply chain, there are various different methods of transportation to consider: road, rail, air, sea, pipeline, and more. Depending on what’s being transported, one method will often be better than the others — for example, rail transportation can reduce congestion and result in less air pollution than heavy-duty trucks, which is why it may be preferred (however, in some locations, rural roads may be the only option).
We may also want to look at the transportation services that companies offer. These can include Full Truckload (FTL) shipping and Less Than Truckload (LTL) shipping, combining various transportation methods (often referred to as intermodal transport), and express delivery services.
What are nodes in logistics?
When it comes to the supply chain, nodes refer to the fixed locations within it. This could be a starting location where natural resources and raw materials are sourced, through to where they are delivered: manufacturing facilities, distribution centres, retailers, and finally the end consumer.
Just as nodes in networking describe points of connection, in logistics the term refers to locations within the supply chain. This makes sense, given that node is derived from the Latin word nodus, which literally translates to “knots”.
What can you say about other terms used in the freight transport sector?
The terms used sometimes overlap in their meaning. Depending on the context or the person using them, they may mean the same thing or something different. Often, there’s no absolute right or wrong.
Examples of similarity or overlap include “transport” or “transportation”, “freight” or “haulage”, and “line haul” or “distribution”.
It may be important to differentiate in some cases. “Line haul”, for instance, refers to moving goods or materials between cities or states, and is distinct from local distribution, which involves moving something within the same city or locality.
Delivery of goods to your home from a local store is an example of local distribution. On the other hand, moving the same goods in bulk over long distances is line haul. Incidentally, that’s the term used in America and Australia; in Europe, it’s referred to as “trunking”.
What about the “last mile” we keep hearing about?
Last mile is a transport-related term that has become commonly used in recent years, mostly since the emergence of online retail and, subsequently, multi-channel distribution.
When you hear reference made to last-mile transportation, or distribution, it simply means the transportation of goods from the final node of the supply chain into the hands of the end customer.
Mostly it relates to consumer home delivery, with the last mile being the trip from a warehouse, distribution centre, or even retail-store stockroom to the consumer’s front door. However, in the case of click-and-collect sales — where the consumer picks up their order from a retail outlet — the last mile is the trip from the distribution centre to the retail outlet.
Learn more about transportation in the supply chain
Hopefully this clears up some of the ambiguity around transport and transportation, but there’s a lot more to know if you’re new to the supply chain world — from improving your transport fleet efficiency through to reducing your freight costs. We also offer transport consulting services if you need an expert to help with your current transportation challenges. Our team can assist with optimising your transportation modes, streamlining your logistics processes, and enhancing your supply chain visibility.
Very simple and understanding explanation, thanks!
Glad you liked it!