understand logistics
Logistics generally refers to the planning of transportation, warehouse management, inventory management, and handling within a warehouse before goods are ready to be shipped from one destination to another through distribution channels.
It is the management of the flow of goods between origin and destination, it involves the planning of goods transportation such as inbound transportation, outbound transportation, loading and unloading, production, packaging and inventory management, it checks the overall quantity and the balance of each item stored in the warehouse situation.
In other words, logistics deals with the overall strategy and planning of the movement of goods from warehouse to destination. The logistics management process is a key step in supply chain management, planning, implementing and controlling the flow of goods from the first step of raw materials to the delivery of goods to their destination.
Crown SDS is also a proud member of UK Logistics (formerly FTA), one of the UK’s largest business groups, supporting, shaping and supporting safe and efficient logistics.
understand distribution
Distribution is the process of making goods available to consumers or other businesses when needed. This includes the storage of goods, order fulfillment and packaging, and sometimes the handling of returns.
The key difference between logistics and distribution is that logistics has more to do with overall planning whereas distribution has more to do with the physical movement of goods from producers to users.
The goal of logistics is to improve internal functions through careful planning, while the goal of distribution is to find efficient ways to get goods to consumers in the most cost-effective and efficient way possible.
Goods distribution, which involves retrieving goods from storage locations and getting them ready for shipping with adequate packaging and correct documentation, is a critical step in supply chain management. It involves overseeing the movement of goods from the manufacturer or supplier to the point of sale by moving the goods from the source to the destination.
There are more factors related to logistics than distribution, involving the planning, coordination and management process involving goods and their resources.
Compare logistics and delivery
Honestly, I have my own preconceived ideas about what constitutes logistics and what constitutes distribution.
When I think of logistics, I think of freight management, transportation, carriers, and the overall planning and management of the movement of goods throughout the end-to-end supply chain. Nodes in logistics include suppliers, distribution channels, logistics service providers and customers.
When I think of distribution, I think of distribution centers, receipt of goods from suppliers, storage and internal processing of materials, fulfillment of orders from customers and channels, replenishment of goods to those channels, and processing customer returns.
In short, I would consider distribution to be a subset of logistics.
However, when you look at the definitions we have provided here from reputable sources, it’s honestly hard to discern any difference between the two terms.
The terms and concepts of planning, goods movement, material handling, inventory management, warehousing, etc. are basically the same in the definition of logistics and distribution.
