A business is constantly working through different logistics operations along a supply chain to move, store, ship and ultimately deliver goods to a customer.
Businesses also use the distribution process, which also transports goods and moves them from one point to another. But what is the main difference between logistics and distribution?
Understanding these two terms is key to choosing the right option for your business so that it can optimize operations. At EP Logistics, we are here to help you understand these processes so that you can decide the next fit for your business.
What is logistics?
Logistics is responsible for managing all the processes in the supply chain, for example, planning and scheduling transportation, implementing strategies and technology, storing the products, and making sure they’re delivered to their final destination in good condition and on time. Logistics oversees that all the operations across the supply chain are running smoothly.
Key components of logistics
These are some of the most important parts of logistics management to keep an eye on. It is important to be familiar with them because properly using them will ensure that your goods are efficiently moved through the supply chain and reach their final destination on time:
- Warehousing: Making sure that goods are stored for short or long term and under the specified needed conditions. For example, perishable goods require temperature-controlled warehouses.
- Real-Time Tracking: Implementing these technologies that monitor the movement of your goods in real-time, will give you and all parties involved a more accurate picture of what is happening along the supply chain. This prevents errors due to miscommunications or errors in data and ensures deliveries are done on time.
- Managing your inventory: Tracking and managing your stock levels is significant to ensure that your products are always available when required and to avoid overstocks and understocks that can bring up unnecessary costs.
- Packaging: The step where your goods need to be carefully packed to get them ready for shipping and delivery so that they stay protected until the moment they reach their final destination.
- Transportation: The process by which the goods are moved from one place to another. Different modes of transportation can be selected by a business depending on the types of goods they’re shipping, and it can be done through, road, air, or ocean freight.
How logistics can benefit businesses
Effective logistics management brings many benefits to your business because it ensures that all your operations are running appropriately and efficiently.
But it also gives your business tools to stay better prepared in case of any challenges that may arise. Logistics ultimately helps your business save on time, resources, and costs while enhancing your efficiency and therefore your customer satisfaction.
This is why many industries such as Pharmaceuticals, Consumer Electronics, and Industrial Machinery partner with experienced 3PL providers that can help them optimize their logistics processes.
At EP Logistics, we offer a range of services, like warehousing, road freight, and air freight, designed to support your business and all its logistics needs.
What is distribution?
Distribution is also a part of the supply chain, but instead of managing all the stages in it, it only focuses on fulfilling orders and delivering.
Distribution management oversees that goods that are finished, are moved from the manufacturers to their end destination, which can be either a distribution center, retailer, or directly to the final customer.
It is important because it is the one that brings the products to consumers, making them available at a retail store or grocery store, for example.
Key functions of distribution
Here are some of the main elements that are part of Distribution. Getting familiar with them is indispensable to make sure that your goods are being moved efficiently and reliably and reaching your customers promptly and in good condition.
- Management of your inventory: This operation monitors your inventory, preferably using some type of real-time technology, making sure that your products are available when needed and that there are no under or overstocks that can generate additional costs.
- Processing your Orders: Takes care of the orders that are placed by your customers and prepares your products to be shipped out on time and properly packaged to avoid damage during transportation.
- Fulfillment: This step makes sure your products are delivered to their final destination using different available options for distribution and overseeing the process until your items reach their final destination.
- Channels of Distribution: The options in which goods can be moved from the manufacturer to the end customer, including indirect distribution methods like wholesale or direct distribution through retail stores.
How distribution supports industry needs
Many industries like Retail, E-commerce, Aerospace, Automotive Parts, and Accessories just to mention a few, rely on distribution management; because this way they make sure their products are delivered on time, which is key for keeping customer satisfaction and sales growing.
At EP Logistics, our distribution services, including customs brokerage, ocean freight, and road freight, help you optimize your distribution process whether it is local, cross-border, or indirect distribution.
Logistics vs. Distribution: The key differences
As you can see, logistics and distribution are related, but they tend to be different parts of the supply chain and different functions.
Logistics covers the entries supply chain from the start of the product to its final delivery, while Distribution focuses exclusively on the delivery and fulfillment of the finished goods.
Logistics and Distribution: Which is Right for your business?
Choosing between logistics and distribution depends on the specific needs your business has. Industries like Pharmaceuticals and Industrial Machinery usually require logistics management making sure their goods are carefully stored, and transported to meet the strict requirements these industries have.
Some Retail and E-commerce businesses, for example, might prioritize efficient distribution management to ensure they provide their customers with a fast and accurate delivery.
How EP Logistics Delivers Tailored Solutions
At EP Logistics, we know that every business is unique, and that’s the reason we offer solutions that can be customized to meet your businesses’ specific needs.
From logistics management or specialized distribution services, our services, are designed to help you with all your operations so that you can be sure that your goods always arrive at their final destination promptly.
Logistics or Distribution: Which Is more effective for different industries?
Depending on the industry your business is in, there are many different ways it can benefit from Logistics and Distribution. Here are some examples:
Pharmaceuticals and Healthcare
Because of the very strict requirements this industry has to comply with, the pharmaceutical industry greatly benefits from logistics and distribution to ensure its products are stored according to the temperature requirements.
Transportation routes are optimized through road or air freight, and they are always delivered on time. At EP Logistics, we offer reliable and fast air freight services that help this industry have peace of mind knowing that pharmaceutical products will reach their final customers safely and on time.
Consumer electronics and automotive parts
In industries like Consumer Electronics and Automotive Parts, logistics and distribution are essential because of the global nature of their products. It is also critical for them to know and properly handle rules and regulations to be able to move these products across borders.
For these reasons, we offer reliable ocean freight and warehousing services at EP Logistics to help businesses in this industry move their goods on time and ensure a fast delivery while meeting all requirements even across borders with our Customs Brokerage service.
Food and beverage
Like the Pharmaceutical industry, The Food and Beverage industry also has strict regulations and requires time-sensitive distribution management to keep their goods fresh and in good condition. This means specialized warehousing and transportation solutions to ensure optimum temperature control.
At EP Logistics, our road freight and customized distribution solutions are designed to deliver these perishables efficiently to grocery stores and other final destinations so that they can safely reach consumers.
Why choosing the right logistics partner is crucial for success
It’s easy to see why many industries choose to partner with a reliable logistics provider like EP Logistics, with experts that will ensure their goods arrive to their final destination on time, avoiding delays, and additional costs and taking care of customer satisfaction.
EP Logistics offers your business a large range of services from ocean, air, and road freight, to warehousing and customs brokerage so that your business can thrive, no matter which industry it belongs to.
By choosing EP Logistics, you can trust that we will take care of your logistics and distribution needs with precision.
