Is transport and logistics the same thing?

Nowadays, when we talk about logistics and transport, it is common for both concepts to be associated and even confused with each other.

Understanding the differences between logistics and transport if you are not in the sector is sometimes a complicated task, so in this article we will talk about some of their similarities and, to a greater extent, their main differences. These notable differences mean that, although logistics and transport are closely linked, they are still different elements that deal with different functions.

Both elements, transport and logistics, together with the term supply chain, can be hierarchised, although they are, in reality, found within each other:

Supply Chain > Logistics > Transport

What is the supply chain?

The Supply Chain is the top link, i.e. the overall view within an organisation’s subsystem.

Technically, a supply chain is the set of activities, facilities and means of distribution necessary to carry out the entire process of selling a product. In other words, the supply chain is the set of phases that encompass the search for raw materials, their transformation, transport and delivery to the final consumer in optimal conditions.

Phases of the supply chain:

The supply chain is not always the same, its form and the activities it includes depend on the good or service we are analysing. It must always be adapted to the nature of the company, and although in all of them there are usually multiple phases or stages, we can speak of 3 fundamental processes:

• Supply. As its name indicates, it is responsible for the purchase of supplies and raw materials. How and where to obtain them, where to store them, how and in what way these materials have to go from one place to another, the negotiation of prices, the control of demand and its forecast, its traceability, the choice of strategic suppliers, the location of warehouses and distribution centres, and a host of other tasks.
• Manufacturing. This is responsible for the transformation of these raw materials into finished products. This is the moment when the product is made physical.
• Distribution. This is responsible for distributing or delivering the finished product to the different points of sale responsible for placing it in the hands of the end consumer.

Correct management of the supply chain allows the company’s key processes related to costs, availability and quality to increase margins to become a reality. In this way, a demand-driven supply chain will be created, where the customer is placed at the centre of the supply chain.

The main objective of the supply chain is to satisfy the needs of the end customer in the best possible way. In order to fulfil its objective, synchronisation in the following tasks is very important:

• Delivering goods and services on time.
• Proper management of inventories and warehouses.
• Avoiding unnecessary losses or waste.
• Optimising distribution times.
• Establish adequate communication and coordination channels.

What is logistics?

Logistics has fundamentally strategic functions. It is responsible for coordinating, planning and managing all the parts and processes that make it possible to move products from their primary state to the final product in the hands of customers. It is therefore responsible for everything related to a final product in terms of storage, inventory, sales, transport and customer service.

The tasks involved in integrated logistics are varied, but they are all part of a holistic view based on effectiveness, efficiency and efficacy.

Its management is a very important part of the supply chain, as it controls the efficiency of transport, the correct execution of activities in the warehouse, order preparation operations and the storage system for subsequent distribution.

As in the supply chain, its primary objective is to meet customer expectations, satisfying demand in the best conditions of service, quality and cost. Guaranteeing the quality of the product and/or service will provide, on the one hand, a competitive advantage and, on the other, a reduction in costs, which will increase the company’s profit.

The objectives that are achieved with good logistical planning are:

• To acquire materials in the most suitable conditions, thus avoiding unpacking, preparation and subsequent adaptation operations.
• To reduce transport costs by grouping loads by offering a full load service (FTL) and minimising stages and distances during the total route.
• Reduce handling costs by moving goods from one place to another as few times as possible.
• Reduce the number of stock checks and stock control.
• Reducing stock classification groups, as well as minimising the volume, enclosures and space allocated to storage.

What is transport?

The transport of goods is one of the most important economic activities for a business, as it provides the flow of inventory from points of origin to destinations or points of consumption.

It is a fundamental service that links the company to its suppliers and to its customers, therefore, it is an essential activity in logistics, and of course, in the supply chain.

Supplying major brands and companies involves a sometimes complex process that needs all parts to be perfectly executed to result in the production of a suitable product and on-time delivery to the customer. This requires that the transport of goods, whether international or domestic, is carefully planned.

So important is the transport of goods in the supply chain that sometimes this activity is responsible for the confidence or frustration of our customers:

• Late deliveries, mix-ups or damaged goods can be the source of complaints and lead to dissatisfaction.
• When a company delivers products on time and in excellent condition, this can lead to increased customer confidence.

Differences between Logistics and Transport

The main difference lies in the breadth of the concepts, since logistics encompasses a large number of operations related to the supply of goods, while transport is only one of the phases that are part of this process. We understand logistics to encompass the tasks of planning and execution, as well as transport management. The main difference is that transport is limited only to the tasks of movement.

To ensure that the supply chain runs smoothly without any irregularities, the two disciplines must work together closely. If this is achieved, it will ensure the highest possible performance with the highest possible quality, i.e. we will achieve efficiency in our work.

Advantages of logistics and transport companies

One of the modalities most in demand by companies is to contract a transport company that also offers storage and logistics solutions at the same time.

Nowadays, it is very common among transport providers that one of their natural evolutions is to move from being a transport company to being considered a logistics operator, as is the case of Conde Fernández Hermanos. This happens as companies grow, expanding the services they offer and completing their offer.

One of the most important factors in improving customer satisfaction is the delivery of the desired goods, in the promised conditions and in the place and time required, which is why having a reliable supplier that offers an integral logistics and distribution management service will be a key part of success.

The main advantages of a logistics and transport company (with the same supplier) are:

• Speed. By dedicating to both services, the number of intermediaries is shortened, which makes the distribution channel shorter and faster. This will increase customer satisfaction by delivering a product in the conditions and time promised.
• Low cost. By creating our alliance with a trusted supplier that offers both services instead of looking for different suppliers, we reduce costs or cost control.
• Specialisation. We take advantage of one company’s expertise in all aspects of permitting and other legal issues related to the storage and transport of goods.

Why choose Conde Fernández Hermanos?

Customer satisfaction is our raison d’être, which is why speed and the condition of the goods when they arrive at their destination is one of our priorities.

Conde Fernández Hermanos reaches its destination no matter where the customer is located, nationally or internationally, or the type of cargo (full load, groupage or break bulk). Currently, in addition to offering our road freight transport services, we provide our customers with logistical solutions for storage and distribution, thus achieving a reduction in logistics costs, an improvement in service and total control over the entire distribution chain.

Trust us, we can offer you customised solutions for the needs of your business and goods!