/fr/lp/blog/logistics/logistics-definition-and-types-explained
Navigating Successful Shipping Logistics
27/06/2024
Having a strong logistics network is vital to the success of businesses. As more and more goods need to travel greater distances to reach their final destination, the various elements of logistics networks have to link up efficiently. With next day consumer expectations and ‘just-in-time’ manufacturing operations becoming increasingly popular, the planning and execution of the transportation process has become even more important in helping set companies apart from their competitors.
Different Definitions: Is Shipping the Same as Logistics?
Logistics is how businesses co-ordinate the functions of a supply chain in the most efficient way possible.
Shipping is the act of transporting goods from one location to another – and ‘shipping’ does not have to mean a journey by sea, either. The shipment method can be over land or in the air.
While shipping is the big picture, logistics are the brush strokes, the detail that produces the end result.
Different Definitions: Is Shipping the Same as Logistics?
Logistics is how businesses co-ordinate the functions of a supply chain in the most efficient way possible.
Shipping is the act of transporting goods from one location to another – and ‘shipping’ does not have to mean a journey by sea, either. The shipment method can be over land or in the air.
While shipping is the big picture, logistics are the brush strokes, the detail that produces the end result.
There are three main logistics strategies businesses use to move goods between different points in the supply chain, which are:
Outbound logistics
As its name implies, outbound logistics is the process of moving goods from their point of origin to their place of receipt. This does not necessarily mean the final destination of a product’s journey from raw materials to supermarket shelf. It could be where the goods are received for a particular stage in a product’s development.
Inbound logistics
Inbound logistics is the process of receiving the goods. This is co-ordinated by the party that takes receipt of the cargo. Examples of inbound logistics could be the way goods are checked in and processed at a warehouse, or customs documentation is prepared. It’s important to remember that any link in the supply chain is a combination of both outbound and inbound logistics, and responsibility for the different stages is shared between both parties.
Reverse logistics
Reverse logistics is what happens when goods move in the opposite direction back through the supply chain, either from one stage to the next, or through the complete product cycle. This could take place, for example, in the motor industry, if a faulty car part has to be returned to where it was manufactured. The party involved with an inbound process would then be responsible for the outbound process.
Exploring The Five Elements of Logistics?
There are five core elements of logistics: storage and warehousing, packaging and unitisation, inventory, transport, information and control. Each plays a key role in the formulation of a company’s logistics strategy.
Ask MSC
As an MSC customer you will have access to our extensive storage and warehousing network, and the global coverage provided by our sea and inland transportation services. If you’re looking to handle all your logistics solutions in one place, discover MSC’s range of shipping and logistics solutions.
