The Common Misunderstanding
Many adults go about their daily lives working with the industries related to the movement of goods. From average retailers to supermarkets, the transportation and logistics industry plays a key role in keeping the economy flowing. Many however, will freely use these terms without the proper understanding that these are two very different entities. Each of these entities plays into each other but have some crucial differences when describing either of the two. By understanding the major differences, the reader will have a much better understanding of the larger picture operations that take place around them.
Logistics – The Brain of the Operation
When many hear the word “logistics,” they are quite confused on its exact purpose. However, there is no reason to fear gaining said understanding. The term logistics was actually coined by the French military in the late 1800’s. At the time, the word meant simply to lodge troops. However, over time this word evolved into a much more complex understanding and the question of “how” it came into relevance.
Logistics in today’s world focuses much on the “how do I most effectively and efficiency do this?” Industry in the modern world is massive, the money moves so quickly, employers do not have the time to enjoy it. This also applies to the goods supplied by employers as well as the people involved. These parts move so quickly that major companies must have an efficiency plan to move these goods in order to prevent losing money and scarce resources. The economics field has a very heavy focus on this and employers will hire economists just on the purpose of optimizing logistic elements. To put the term into perspective, logistics is the brain behind where resources go and how to get them there as efficiency as possible.
Transportation – The Muscle
After understanding the larger picture of logistics, grasping the purpose of transportation is very simple. Transportation is the key element in logistics, as without it goods would not move and vendors would have nothing to sell. Transportation put simply is the movement of goods from point A to point B. The logistical considerations are what gets them there with the fuel they need, the goods ordered and on the most efficient route possible. Transportation ranges far and wide in how goods get from point A to B. Most commonly, truckers are the first occupation in mind when the word transportation is brought up. Although the most popular, transportation includes but is not limited to trucks, planes, trains, and boats. More recently, the major vendor Amazon got an edge on its competitors by using blimps and drones and using specialized truck wraps to deliver goods to customer’s doors.
Transportation has been evolving since the dawn of man even before the invention of the wheel. Sleds were humanities first major form of moving resources around. Once the wheel was invented, transportation quickly evolved tools such as carts which spearheaded today’s vehicles. As stated above, transportation is still quickly evolving to further the speed and cost effectiveness of moving goods.
The Common Grounds – How the Two Correlate
In understanding how vast the industries are spread, one must understand how transportation and logistics work hand and hand to make life easier for consumers and vendors. Vendors are creating new programs every day on the logistics level in order to make transporting goods easier for the people whose job it is to move the goods. For example, a transportation company which makes runs across the country wants to ensure that its truckers are driving the most effective routes daily. This can be complicated trying to factor in the considerations of traffic, weather, road closures, etc. It is the job of someone such as an economist or programmer to design models to have the most up-to-date information possible. This will allow distribution centers to send their drivers on the most effective routes.
Transportation and logistics are two very different yet intermingled industries which play a key role in the movement of goods in the most effective and efficient way. While logistics is the mind behind the operation, transportation is the pushing force in ensuring the goods make it from point A to point B and that the mode of transpiration makes it back in a timely manner. The key differences between the two is what gives each such an important role in the complex elements of today’s commerce and infrastructure. Contact the George and Wendy Show for more details.