What is the Difference Between Shipping and Logistics?
Shipping is the act of physically transporting goods or materials between locations. Logistics, on the other hand, is the process of managing an intricate operation. Logistics is used in a vast array of industries, not just the shipping industry. Hospitals rely on logistics to move patients to different rooms and floors based on their care requirements. And food delivery services rely on logistics to get meals to customers promptly. So, to recap: shipping is the transportation of goods. Shipping logistics is all of the processes involved in successfully transporting goods. And Logistics is a broader term referring to the management of any complex procedure. The original French word Logistique for military procurement, supply, maintenance, and transportation planning and implementing the flow of goods and services became Logistics in English.
Logistics management is broken down into 3 major categories.
1. Inbound logistics – the process of receiving goods from a supplier, manufacturer, or point of origin.
2. Outbound logistics – the process of delivering goods to their final destination (typically the customer).
3. Reverse logistics – the process of receiving returned goods from a customer.
Shipping is used in all three types of logistics and each type requires its own logistics strategy. Businesses receive inbound shipments, send outbound shipments, and receive reverse shipments when a customer needs to return or exchange a product.
Amazon’s Secrets to Shipping Logistics Efficiency
Amazon is one of the top businesses in the world when it comes to shipping logistics efficiency. They’ve secured millions of loyal customers around the world by offering free same-day delivery (even for orders as late as noon). There are over 112 million Prime members in the United States alone, almost a third of the whole population. But how does Amazon manage to send billions of shipments each year without missing a beat? Let’s take a closer look at their shipping and logistics solutions.