Transport and logistics management refers to the processes used to move goods from their place of origin to their final destination in an efficient manner while minimizing costs, losses, and other undesired outcomes.
Transport and logistics management can be broken down into two distinct functions: transportation management and logistics management.
The primary goal of transport and logistics management is not only to transport the goods to their final destination, but also to ensure they are received by the end consumer in good condition, no matter how far or complex the journey may be.
A glossary of transportation terms
The language of logistics is often confusing, especially for those who are new to transport and logistics management. There’s a lot of jargon involved, as well as some acronyms that can be puzzling.
To help you understand what you’re reading, here is a glossary of common terms in transportation and logistics management The World Bank defines transport and logistics as the system that moves goods from where they are produced to where they are consumed.
This includes not only vehicles but also infrastructure like roads, ports, airports, warehouses, railroads, airfreight terminals and more.
Transporting goods involves not only moving them from one place to another but also getting them there on time—which requires an entire industry dedicated to planning routes, managing schedules and communicating with clients about shipments.
The key roles in the industry
Although there are numerous titles within transport and logistics management, each job involves either moving goods from one place to another or managing them during transit.
In smaller companies, these positions may be filled by a single person; in larger ones, people will specialize in particular areas. For example, a company might have separate managers for warehousing and shipping.
The following list outlines some of the most common roles:
Transport manager: Responsible for making sure that vehicles, drivers and other resources arrive at their destinations on time.
Fleet manager: Oversees maintenance of vehicles used by a company’s fleet (i.e., all its cars).
Warehousing manager: Takes care of inventory storage in warehouses; may also oversee employees who do physical work such as unloading trucks or loading boxes onto shelves.
Shipping manager: Manages staff responsible for preparing packages for shipment. May also manage trucking routes or arrange air shipments.
Distribution manager: Manages staff responsible for taking products from a warehouse and getting them into customers’ hands; often oversees sales reps who handle orders directly with customers.
How businesses can save on shipping costs
Businesses that outsource shipping to third-party companies can save on costs by not having to invest in new equipment or technology.
Outsourcing your shipping and logistics to Prestige Logistics Group is also great for busy businesses. For example, if you already use a courier service for business-to-business deliveries, you could consider outsourcing your shipping so all of your packages get sent via their existing infrastructure.
A professional logistics provider like Prestige Logistics Group can help streamline your company’s operations by adding customized packaging services.
For example, if you’re sending hundreds of boxes each week (such as orders from an ecommerce site), it might be worth looking into whether a specialized shipping company could offer better rates than your current shipper.