Logistics management and freight management are common terms that are highly used in different types of business. These terms logistics and freight are completely linked with the transportation and movement of business products with the aid of various modes of transport such as the ocean, air, rail, and truck. If you are looking to streamline your supply chain segment, then freight management and logistics management will make huge importance to be executed properly. You will know the importance of understanding the difference of these terminologies if you are precisely in the need to execute the transportation of your goods or involved in the business.
What is Freight Management?
Freight management can be explained as the process of controlling the transportation of freight. To be explained more deeply, Freight Management is described as the process of controlling and executing a cost-efficient procedure with the delivery of goods. Freight management blends the human resources, logistics experience, and information to guarantee smooth sync between the shippers and carriers.
What are the key tasks are involved in efficient Freight Management?
For a successful freight management activity, a firm has to perform the below activities but not limited to:
- Choosing an appropriate transport company, making contact, and engaging precise carriers and transportation.
- Discussion and fixing of rates, expectations, terms, and conditions.
- Making and executing the detailed paperwork that is crucial during the cargo transportation activity.
- Shipping and arranging the precise transporters to gather and distribute the cargo at scheduled times.
- Selecting the choice of modes, routing trucks or trailers with load balancing.
- Trailing the cargo movement all over the supply chain process.
- Guaranteeing customs agreement by picking, engaging, and operating with customs brokers.
- Covering the transported cargo with an optimal insurance plan while also supervising the freight claims.
- Supervising and handling payments, receipts, and invoices associated with the cargo transit.
- Improving the transport performance, decreasing the travel time, reducing costs, and influence of other environmental aspects ensuring optimal performance of transportation process.
- Above are a majority of tasks carried by freight management personnel but may also include other relative additional tasks depending on the precise requirements. Without proper freight management, there may be the failure of several organization operations in a large way.
What is Logistics Management?
- Logistics management can be explained as the comprehensive course of managing the obtainment, storage, and transportation of resources to the final destination. Precisely, logistics management is a key aspect of supply chain management that comprises supervising the preparation and executing of the effective forwarding and warehousing of cargo, services, and conveying related data between the source and final destination.
- Logistics management is the bigger part of the overall service that includes all the main set of actions when compared to precise activities in freight management service. Below are the major activities that are linked with Logistics Management.
- Logistics management activities are explained in transportation terminologies as the inclusion of inbound and outbound transportation management, warehousing, fleet management, handling of goods, order fulfillment, outlining the logistics network, managing inventory, supply/demand supervision, and strategizing of third-party services providers in logistics service. Majorly, logistics management operations comprise obtainment and sourcing, precise customer service, production scheduling and management, gathering, and packaging. Logistics management includes all important stages of the complete transportation process comprising planning, operational and strategic tasks. Moreover, it is the main aspect in syncing all the activities, with proper integration of logistics actions with other occupations like manufacturing, sales, marketing, investment, and information technology. Major tasks involved with Logistics management are:
- Storage and allocating administration and schedules.
- Vendor and customer order management
- Effective packaging, handling, and transport management.
- Logistics related to Import and export activities.
- Coordination of supply chain and optimizing connections.
- Tracking of precise goods and management across the overall supply chain.
- Management and choice of Seller connections.
- Optimizing and analysis of the flow of cargo.
- Management of assets with comprehensive management of supply chain visibility.
Why is freight management important?
Freight management is a key and impactful process that demands various crucial operations, associates, and technologies to come together for effective streamlining of transport services. Many related aspects are carried at the same time to ensure success. Any type of business irrespective of its size will not usually consist of the team or proficiency in managing their freight management service. It is seldom effective for different businesses to manage all the freight management activities by themselves. A high percentage of businesses look to associate with an experienced transportation and logistics company for successful freight management. This has proven to be effective in decreasing costs, improving efficiency, and provide the best customer service.
What is the major difference Between Freight Management and Logistics Management?
Individuals who are not deeply involved in the supply chain segment will not recognize the key differences between the two terms, freight management, and logistics management. But with clear definitions and mention of tasks planned and performed by each term, you can see a clear difference.
Logistics management is a wider and all-inclusive term and covers wide-ranging activities and key responsibilities.
Freight management is a subdivision of the wider logistics management but of similar importance. Without an effective and comprehensive method of freight management, there will not be successful logistics management. Many organizations have faced collective failure without the precise integration of both management services.
An impactful execution of Freight Management and Logistics Management is key for any kind of business to expand its reach to expected heights. It marks the way for associating with experienced logistics companies like Corlett express for keeping your shipments secured and swift delivery service. We possess the capability to offer quick, and damage-free service to even the highly remote regions of Utah. Our main motive is to aid your business meet the precise logistical requirements, regardless of your business type, size, and mode of operation. We are happy to provide your business a highly simplified shipping process that will support you to reach desired levels at cost-effective rates.