In the business world, especially in trade and distribution, the terms “logistics” and “expedition” are often used interchangeably. However, they play distinct roles in the supply chain. So, what exactly is the difference between logistics and expedition?
Understanding the difference between logistics and expedition is crucial for business owners looking to improve operational efficiency. By grasping these concepts, businesses can determine the most suitable service for their needs.
Additionally, individuals frequently dealing with shipments can make wiser decisions when selecting the right service for their purposes.
Understanding the Difference Between Logistics and Expedition
What is Logistics?
According to the Council of Supply Chain Management Professionals (CSCMP), logistics is the process of planning, executing, and controlling the flow of goods, services, and information from the point of origin to the customer in an efficient and effective manner.
Logistics is not only about shipping goods; it also involves storage, inventory management, and coordination among various stakeholders in the supply chain.
Main Functions of Logistics:
- Storage of Goods: Logistics includes storing products in warehouses before they are distributed to customers or retailers. Storage can be done in large warehouses or self-storage facilities for greater flexibility.
- Inventory Management: Ensuring stock levels remain adequate to avoid shortages or overstocking.
- Distribution and Transportation: Managing the movement of goods from warehouses to various destinations, including customers and distributors.
- Supply Chain Management: Integrating different elements in the supply chain to enhance efficiency, reduce costs, and accelerate distribution processes.
Example of Logistics in Business:
In e-commerce, companies utilize logistics services to store products in fulfillment center warehouses. From there, products are packaged and shipped to customers using expedition services.
Logistics also assists with inventory tracking, order management, and optimizing distribution routes to save time and shipping costs.
What is Expedition?
Expedition refers to a shipping service that transports goods from one location to another within a specified timeframe. This service includes various shipping options, with rates determined based on weight, dimensions, and distance.
Types of Expedition Services:
- Regular Delivery: Standard shipping with a set delivery time, typically 2-5 business days, depending on distance and destination.
- Cargo Shipping: Bulk shipping at a lower cost, commonly used by manufacturers and distributors.
- Same-Day Delivery: Fast delivery service within a single day, often used by e-commerce businesses to meet customer demands for quick arrivals.
- International Shipping: Cross-border delivery services that handle customs clearance and international trade regulations.
Example of Expedition in Business:
Courier companies like JNE, J&T, SiCepat, and DHL are responsible for transporting goods from storage warehouses to customers. They collaborate with logistics providers to ensure smooth and timely deliveries.
Key Differences Between Logistics and Expedition
Here is a comparison between logistics and expedition:
| Aspect | Logistics | Expedition |
|---|---|---|
| Main Function | Storage, distribution, supply chain management | Shipping goods |
| Process | Complex, covering various aspects of the supply chain | Focused on transporting goods |
| Industries Served | E-commerce, manufacturing, retail | Courier, parcel delivery |
| Major Players | DHL, FedEx, WMS, SpaceHub | JNE, J&T, SiCepat |
Roles of Logistics and Expedition in Business
After understanding the differences between logistics and expedition in terms of definition, let’s examine their roles in business operations. Logistics and expedition work together in the supply chain. For example, in e-commerce:
- Logistics: Manages warehouse inventory, ensures product availability, and arranges efficient shipping strategies.
- Expedition: Delivers goods from the warehouse to customers through various service options tailored to customer needs.
Businesses with high shipping volumes typically use comprehensive logistics services with warehouse management systems. Meanwhile, small and medium enterprises (SMEs) often rely on expedition services to ship products directly to customers.
The Role of Self Storage in the Supply Chain Industry
Self storage services like SpaceHub play a crucial role in the logistics ecosystem, especially for businesses needing flexible storage before distributing their products.
Benefits of Using Self Storage in Logistics:
- Flexible Storage: Businesses can rent storage space as needed without investing in permanent warehouses.
- Cost Efficiency: More economical than renting a large warehouse that may not always be fully utilized.
- Guaranteed Security: Self-storage facilities provide 24/7 security systems, CCTV surveillance, and restricted access to ensure goods remain safe.
- Strategic Locations: Many self-storage services are located in urban areas, making it easier to distribute goods to customers faster.
Now that you understand the difference between logistics and expedition, here’s a quick summary:
- Logistics involves the entire process of managing goods, from storage to distribution.
- Expedition focuses solely on transporting goods to their final destination.
Business owners must understand these differences to choose the right service based on their operational needs.
SpaceHub is now available in MH Thamrin, Bendungan Hilir, Gajah Mada, and Daan Mogot. If you need warehouse rental for safe and flexible storage, SpaceHub is here to help.
