What is the difference between logistics and freight transportation

Differences and links between logistics and freight

First, the characteristics of the traditional freight forwarding industry

The current freight forwarding business is essentially an agency behavior, and did not integrate with the customers of its services. When he booked to the shipping company as a shipper, he is only the agent of the owner; and when he was soliciting goods Yang or bill of lading, he became the shipping company's agent; even if he has the ability to arrange the whole transportation in their own name and issue their own bill of lading for the whole process, but also just acted as a carrier's role, strictly speaking, there is still no escape from the shadow of the agent. In short, in either case, he is not the true meaning of logistics service providers.

Second, the traditional freight forwarding business and the difference between modern logistics services

The traditional freight forwarding business and modern logistics services compared, there are some differences:

First, the modern logistics services enterprises must master advanced management technology, communication between the relevant units of information exchange and information processing technology and equipment; traditional freight forwarding is mainly dependent on freight transportation equipment, such as warehouses, fleets, and other equipment. Dependent on freight transportation equipment, such as warehouses, fleets, etc., in the freight forwarding business, the source of information is mainly dependent on the customer to provide their own.

Second, the freight forwarding service is usually based on customer instructions as a starting point, in comparison, this service is passive; and logistics services, the goal is to continuously meet customer needs, to help customers develop business strategies, and therefore is active, with the role of guidance.

Third, modern logistics services are not necessarily engaged in specific freight transportation. Its main task is to promote advanced freight integration management technology to the relevant customers, focusing on the overall transportation link to control, so as to provide transportation management services to customers, so they are not necessarily like freight forwarders, actually engaged in specific freight work, the customer's goods from one point to the designated another point.

Fourth, freight forwarders are only involved in activities related to freight transportation, but modern logistics services may also provide global ordering and delivery services to customers. Therefore, the scope of modern logistics services is broader, and more closely linked with the enterprises in the supply chain.

Fifth, modern logistics services enterprises need to improve the logistics network, how to establish a sound logistics network is more important than only engaged in freight forwarding enterprises. There is no perfect network can not do a good job of supply chain management and transportation services.

It can be seen that the modern integrated logistics on the freight forwarding industry to form the biggest challenge is that the freight forwarding enterprises can break the traditional business ideas, and the main body of the supply of logistics and consumer body mingled with the past dispersed sea, land, air, warehousing industry organically combined together, to the owner of the goods than the freight or forwarding enterprises to provide a more comprehensive, more systematic processing, packaging, loading and unloading, warehousing, transportation, Distribution, customs clearance, inspection and other integrated services, the whole process of information tracking penetrate into the production, processing and distribution of the links, including logistics, business flow, capital flow, information flow and other parts.