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What’s the Difference Between Logistics and Distribution?

A key difference between logistics and distribution is that logistics relates to the overall planning and organisation around the movement, storage and inventory control of goods, whereas distribution is more related to the actual physical placement of the goods.

Logistics and distribution are critical components of the efficient day-to-day operations of delivering goods from one location to another. Both of these components generally relate to warehousing, stock control, monitoring of the flow of goods before the movement.

Logistics and distribution are crucial processes in ensuring that stock is delivered to the right location, at the right time, whilst remaining cost-effective. As these are two very different things but work hand-in-hand, many people remain confused about what the differences are between the two.

National Logistics Day takes place annually on June 28th, which is a day to show the hard efforts and appreciation which the logistics industry plays in not just our national economy, but globally also.

In this article, we take a look at the individual processes that go into logistics and distribution, as well as what the differences are between them and how logistics and distribution are involved in our bespoke courier service.

 

Understanding Logistics

Logistics generally refers to the planning of transportation, warehouse management, inventory management and handling of goods within a warehouse before they are ready to be taken from one destination to another through the distribution channels. 

It’s the management of the flow of goods between the point of origin and the end destination, which involves the planning of transportation of goods, such as inbound transportation, outbound transportation, handling, production, packaging and inventory management, which checks the overall quantities and condition of each item held in a warehouse.

In other words, logistics deal with the overall strategy and planning of the flow of goods from the warehouse to the endpoint. The logistics management process is a crucial step of supply chain management which plans the implementation and controlling of the movement of goods from the very first step of raw materials, all the way through to delivering the goods to its destination.

Crown Couriers are also proud members of the Logistics UK (formerly the FTA), who are one of the biggest business groups in the UK, supporting, shaping and standing up for safe and efficient logistics.

 

Understanding Distribution

Distribution is the process of making goods available for consumers or other businesses as and when they are needed. This includes the storage, order fulfilment and packaging of goods, and sometimes the handling of returned goods.

A prime difference between logistics and distribution is that logistics relates more to the overall planning, whereas distribution is more related to the physical movement of goods from the producer to the user. 

The objective of logistics is to improve the internal functions with thorough planning, whereas the objective of distribution is to find effective ways for the goods to reach the consumer in the most cost-effective and efficient way possible.

Distribution of goods involves retrieving goods from a storage location and preparing for transportation with sufficient packaging and correct documentation, which is a critical step in supply chain management. It relates to overseeing the movement of goods from a manufacturer or supplier to the point of sale, by moving the goods from its source to the destination.

There are more factors relating to logistics in comparison to distribution, relating to the planning, coordination and management processes involving the goods and its resources.

 

Talk To Us Today

Through warehouse consolidation within our on-site facility, our supply chain solutions have created cost efficiencies for our retail customers, whilst providing their vendors with wider collection windows and enhanced stock delivery options. 

We can store goods in our safe and secure warehouse for a more efficient and cost-effective courier service. Our modern warehouse enables us to offer customers a complete logistical solution. With our national warehouse located in Tamworth, it’s a prime spot for distribution across the UK with easy access to and from the M42 and M6 motorways.

Our warehouse is even equipped with the latest modern technology (including a labelling system and barcode scanners) to enable us to integrate our service better with our customers.

If you’d like to find out more about our warehousing solution, please get in touch with us.

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