Logistics vs Intralogistics. What is the difference and why does it matter?
Efficiency in logistics operations is a key determinant of business success. However, as technologies advance and market needs evolve, it is vital to understand the nuances between terms that are often confused, such as “logistics” and “intralogistics”. Knowing their differences is crucial to optimizing processes and identifying key areas for improvement within a company’s supply chain.
This article explores what each term means and why intralogistics is gaining so much relevance.
What is logistics?
Logistics, in general terms, refers to the process of managing the movement of products, information and resources from their point of origin to their destination. This field ranges from transportation, warehousing and distribution to inventory management and customer services. In other words, logistics is the backbone that ensures that products reach customers in the expected time and conditions.
In the current context where e-commerce and globalization are gaining ground, logistics becomes a large-scale challenge that seeks to balance efficiency, cost and customer satisfaction. Supply chain planning, transport management, route optimization, warehousing and distribution, just-in-time delivery and return with cost reduction are some of the key objectives that companies seek to achieve through effective logistics management.
- Supply chain planning: Design and management of the network of suppliers, manufacturers, warehouses and distributors.
- Transport management: Selection of the most appropriate means of transport for each type of product and destination.
- Route optimización
- Warehousing: Warehouse management, inventory control and space optimization.
- Distribution and just-in-time delivery: Efficient delivery of products to end customers, either through direct or indirect channels.
- Return of items.
Major trends in logistics
Logistics is undergoing a transformation driven by automation and new technologies. The adoption of robotic systems and automated warehousing solutions, artificial intelligence and Big Data are redefining operational efficiency. Sustainability has also gained prominence, driving the use of technologies that optimize the use of space and reduce carbon footprint. The rise of ecommerce has made omni-channeling essential, integrating online and offline channels to enhance the customer experience. In addition, last mile or micro-fulfillment centers close to urban areas optimize delivery times, responding to the demand for faster and more efficient shipments.
What is intralogistics?
This concept is gaining relevance as companies seek to remain profitable, competitive and resilient. Operational efficiency has become essential, and high operating costs coupled with the need for space optimization put constant pressure. At the same time, the demand for sustainability demands the adoption of more responsible practices. In addition, rapid technological evolution requires the integration of advanced automation and artificial intelligence solutions, while seeking to scale operations in an agile and flexible manner to adapt to market fluctuations. These challenges are compounded by pressure to reduce human error and meet tighter deadlines, all in an environment of increasing global competition.
Intralogistics is the backbone of a company’s internal operations, managing the flow of materials, operations, processes and data within facilities, mainly in warehouses or distribution centers. This discipline goes beyond simple materials management and encompasses all the processes involved in the internal supply chain.
Intralogistics focuses on how flows and resources are optimally managed. Goods receipt is the first link in the intralogistics chain, encompassing the verification, inspection and initial storage of products. Storage involves the efficient organization of inventory, ensuring its accessibility and preservation. And depending on the specific needs of each company, intralogistics may include various additional operations such as order picking, sorting, reverse logistics and internal transport.
In addition to the physical management of products, intralogistics deals with the information and financial flows associated with each operation. This data is essential for decision-making and process optimization. Integration with management systems such as ERP, MES and WMS allows complete visibility of the supply chain, facilitating planning, control and decision-making in real time.
Intralogistics thus focuses on how flows and resources are optimally managed within the facility, including receiving, storage, internal transport, as well as sorting, order picking, and reverse logistics.
- Receipt of goods: Verification, inspection and initial storage of products.
- Intelligent warehousing: Organization and management of inventory through automated systems.
- Various operations: Picking, classification, packaging and labelling of products for shipment.
- Internal transport: Movement of materials within the company’s premises.
- Information flows, finantial, material
- Integration with ERP, MES and WMS management systems.
Importance of intralogistics
In the current context of high competitiveness and demand for efficiency, intralogistics has become a crucial factor for the success of companies. The ability to effectively manage internal processes determines the agility, sustainability and profitability of the business. Optimizing intralogistics is a fundamental pillar to ensure the long-term competitiveness and growth of any organization. By optimizing internal flows of materials, information and financial resources, higher levels of efficiency are achieved, from speeding up order picking to better utilization of space and equipment. This improvement means reduced operating time and costs, as well as greater accuracy and traceability in inventory management, contributing to customer satisfaction. In addition, the flexibility it provides allows companies to adapt quickly to market changes, ensuring a competitive advantage. Finally, optimized intralogistics also reinforces sustainability, reducing waste and optimizing the use of resources.
Key differences between logistics and Intralogistics
Feature | Logistics | Intralogistics |
Outreach | Complete supply chain: from supplier to end customer. | Internal processes of an organization: within warehouses, factories, distribution centers. |
Approach | Optimization of the flow of goods and services, including transport, storage and distribution. | Optimization of material, information and resources flows within a facility. |
Key activities | Supply chain planning, transport management, inventory management, warehouse management, order management. | Receipt of goods, storage, order preparation, picking, packaging, internal transport. |
Technologies | Transport management systems (TMS), warehouse management systems (WMS), enterprise resource planning (ERP). | Warehouse management systems (WMS), mobile robotics for internal operations, Artificial Intelligence. |
Key metrics | Total cost of operation, order cycle time, customer service level, return on investment (ROI). | Productivity, space utilization, inventory accuracy, picking cycle time, total cost of operation. |
Strategic objectives | Customer satisfaction, cost reduction, improved efficiency, increased flexibility. | Optimizing internal processes, reducing errors, improving productivity, increasing capacity, reducing costs. |
Sustainability | Carbon footprint reduction through transport and distribution optimization | Reduction of waste and optimization of the use of resources within the company.
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Main challenges | Adaptation to e-commerce, globalization, customer satisfaction and cost reduction throughout the chain. | Omni-channeling, maximization of space utilization, error reduction, sustainability and flexibility to adapt to market fluctuations. |