What is the Difference Between Logistics and Freight Forwarding?

What is the Difference Between Logistics and Freight Forwarding?

Logistics providers and freight forwarders both play a crucial role in the day-to-day operations of businesses worldwide, but how they achieve your company’s goals is what separates the two. One of the biggest distinctions is that logistics handles a broader range of functions regarding your supply chain. Logistics providers handle your goods and products before they are shipped to ensure they reach the buyer in a timely fashion.

Where the main purpose of freight forwarders is to move your products from point A to point B. Freight forwarders make movement from point A to point B possible by coordinating the entire process. They often act as a broker between you and the shipping service and are your single point of contact throughout the process.

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What is Logistics?

Logistics companies own their own assets, including intermodal fleets of trucks, planes, and boats. With logistics management, you get storage, packaging, and transportation solutions. A logistics provider will handle and manage the transportation of goods and products within their networks, not just from point A to point B. Most logistics providers will attempt to cover every facet of the supply chain and will integrate into various aspects of your business. Logistics providers can hire freight forwarders to assist with complex orders. The goal of logistics is to optimize your supply chain in order to maximize your profits and minimize loss.


What is Freight Forwarding?

Freight forwarders specialize in transporting products and goods between two places and coordinate the entire process. Like logistics providers, freight forwarders also handle the transportation of your goods from trucks, ships, and trains. Freight forwarders act as a broker between you and the shipping services. They will also negotiate rates on your behalf. Freight forwarders will also assist with documentation when exporting domestically or internationally, saving you time and money.

Logistics vs Freight Forwarding

The differences between logistics and freight forwarding may be hard to determine, but with a closer look, these two services couldn’t be more different. Logistics is a broader service that is much more comprehensive. Logistics providers use in-depth knowledge and analysis to optimize your shipping routes. A good logistics provider will have an established network with established relationships that ensure your goods arrive at their destination.

Freight forwarders are the service providers that coordinate getting your goods to their destination. When transporting your goods, freight forwarders will use trucks, trains, and ships. They will also negotiate rates on your behalf to save your company money and will handle most of the paperwork for shipping nationally or internationally. Logistics providers will hire freight forwarders to manage goods and handle complex orders.

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Why Use TKO Logistics?

TKO Logistics is an experienced logistics provider and uses a modern fleet of the latest Cascadia trucks, providing our drivers with comfort and the tools they need to get the job done. We use our experience, the latest technologies, and powerful analytical programs to optimize your supply chain. We move quickly to serve our customers and employ industry leaders to ensure we deliver and adapt to your changing logistics needs. If you have questions and would like to learn more about our third party logistics solutions, call us at (630) 592-4744 today or visit our contact us page.