Getting products from one place to another is a complex process, and freight logistics is at the heart of it. But what does freight logistics actually encompass?

At a high level, freight logistics is the planning, coordination, and process of moving goods. It plays a critical role in getting products delivered on time, on spec, and on budget, but it can be an ambiguous term with varying definitions depending on who you are talking to. We'll break it down for you here because knowing the basics of it can help you better manage your supply chain.

Key aspects of freight logistics
Freight logistics, also referred to as shipping logistics, includes several components. Three of the most important are transportation, warehousing, and inventory management.

Freight can be transported by road, rail, ocean, air, or intermodal (combining two or more modes). In the U.S., trucks move about 73% of the nation’s freight—trains, ships, and airplanes can't pull up to a warehouse—making trucking the predominant mode many people refer to when they discuss freight logistics.

Within freight logistics there are three primary types of movements:

• Inbound: Inbound logistics is the transportation, receiving, handling, and storing of goods that are coming into a facility, such as raw materials heading to a manufacturing facility or finished goods moving into a warehouse. Note that for Amazon Freight, inbound means getting your goods shipped to Amazon’s Fulfillment Centers.

• Outbound: Outbound logistics is the process of picking, packing, and moving goods from the warehouse or facility to customers or end users. That could be anything from a distribution center to an actual consumer.

• Reverse: Reverse logistics takes place after the sale and moves goods and packages back through the supply chain from the end customer due to a return. It is a specialized logistics segment.

Types of trucking shipments
When it is time to secure a truck, you can choose to move your goods either by using full truckload, less-than-truckload, shared or partial truckload shipments, or even intermodal containers, depending on the amount you're shipping, your timeframe, and your budget.

• Full-truckload: Full-truckload (FTL) freight dedicates a trailer (usually a 53-foot dry van) to a single load from one shipper, even if the trailer isn’t completely packed. FTL can be faster and more secure because it can go directly from Point A to Point B without making additional stops.

• Less-than-truckload: Less-than-truckload, also called LTL, combines multiple shipments from different customers into a single trailer, and shippers only pay for the space their cargo uses.

• Shared and partial truckload: Shared truckload (STL) and partial truckload (PTL) are like LTL in that multiple shippers’ freight is combined in the trailer but freight stays on the same trailer and is not consolidated or transloaded before making it to the final destination. They are both less common than FTL and LTL shipments.

• Intermodal: Freight moving on more than one mode, such as from a train to a truck is transported in an intermodal, or shipping, container. The rectangular boxes look a lot like a trailer, but they don’t have wheels and instead attach to a chassis.

The carrier selection process
Once you know how you want to move your freight, you have to choose which company is going to move it. Choosing a reliable carrier is essential for smooth deliveries. You can hire carriers directly, work with a freight broker, or partner with a third-party logistics provider. If you’re looking for even more support, you can also turn to a lead logistics service provider.

Freight brokers play a valuable role in consolidating carrier capacity and making it easier for shippers to access. More than 95% of active motor carriers own or lease ten or fewer trucks, and that capacity makes up an important part of the trucking industry.

Brokers don't take possession of the cargo. Instead, they break down barriers for shippers while also vetting carriers, matching shippers with the right carrier for their load, and tracking and managing each step from pick up to delivery.

Brokers are different than freight forwarders. While freight forwarders also match shippers with transportation providers, they can also take possession of the freight. Freight forwarders often handle the entire shipping process from beginning to end and may also offer other supply chain services, including warehousing, document preparation, and customs clearance.

Third-party logistics providers—3PLs—offer multiple supply chain services, including transportation, warehousing, and inventory management. A lead logistics service provider, also called a 4PL, provides many of the services 3PLs offer, but goes a step further to manage a company's entire supply chain end-to-end.

Optimize your operations
The logistics industry increasingly leverages technology to increase efficiency and provide visibility, as well as tracking and tracing capabilities.

Freight logistics is incorporating vast amounts of technology, including artificial intelligence and machine learning, to track freight, identify inefficiencies, forecast demand, and reduce the risk of disruptions. Some systems, such as transportation management systems (TMS) and warehouse management systems (WMS), have been around for decades, but they continue to get more powerful.

A TMS helps orchestrate the movement of goods and can optimize routes, consolidate freight, and ensure shipments are delivered in the most cost-effective way. A WMS helps streamline warehouse operations with space utilization, inventory management, order fulfillment, and picking and packing. Both systems can provide visibility into shipments and help increase efficiency.

Closing Qs
We’ve already covered a lot, but we want to delve into a few of the FAQs we hear about freight shipping and logistics.

Q: I see the terms shipping, logistics, and shipping logistics all over. Do they mean the same thing?
The short answer is no. It can get confusing but here are some important differences.
• Shipping: Shipping is the physical process of transporting goods and is just one aspect of freight logistics.
• Logistics: Logistics is a broader term that encompasses the entire process of receiving, storing, coordinating, and moving products through the supply chain via various modes, including trucking, rail, ocean, and air.
• Shipping logistics: Shipping logistics, also called freight logistics, encompasses the process of managing and transporting goods, primarily by truck, including securing transportation capacity and finding the most efficient way to move products to their destination.

Q: How can I make my freight logistics more efficient?
Visibility is an integral part of increasing efficiency. You need to see where your loads are and when they'll arrive so you can be prepared to receive and unload them. Visibility also gives you insights into possible delays or disruptions so you can make data-driven decisions about what to do next.

Another tool to keep things moving is a trailer pool. Trailer pools allow shippers to pre-load trailers for drop and hook so drivers can leave a trailer and immediately connect to one that's ready to go.

Q: What are some common freight logistics challenges?
Supply chain disruptions are a top concern for anyone moving goods. Traffic, severe weather, and even crowded yards can create delays. Capacity constraints can create bottlenecks and impact costs, especially during peak seasons. Tapping into a broker and creating a contingency plan help you avoid unforeseen situations.

Let us help
Amazon Freight has developed solutions that connect the pieces of the logistics puzzle, including online tools and self-service online portals to help you manage your shipments on demand. Plus, our trailers are equipped with GPS, and carriers and drivers utilize the Amazon Relay app to ensure visibility. If you’d like to work with Amazon Freight and tap into our more than 60,000 trailers for your freight logistics needs, create an account and get started.