Shipping vs. Downstream Distribution: Understanding the Difference in Supply Chain Logistics

In the world of logistics, we often use a few words interchangeably, even without understanding its concepts. Two such words are ‘Downstream Distribution’ and ‘Shipping’. These two words have completely distinct concepts, each with its processes and implications. In today’s blog, we will understand the core difference between these two words.

‘Shipping’ in logistics

Shipping is the process of moving consignment or goods from the port of origin to the port of discharge which can be a distribution center, door delivery or to a retail store. It includes multiple activities and tasks to make the consignment reach its final destination.

Origin to door-to-door: Shipping begins at the point of loading, which could be a manufacturer or a supplier location. The goods are shipped to a destined location which can be a distribution center, warehouse or door-to-door service.

Bulk shipment: The goods are generally moved in bulk, either on a pallet or container with various items. Goods moving to similar destinations are consolidated to optimise operational efficiency.

Multimodal carriers: While the goods are in transit from the origin to the destination, the shipper or the freight forwarder might use multiple channels. For example, the manufacturer or shipper might use a freight carrier to a distribution centre; followed by a regional distribution channel for further movement of consignment.

Documentation & tracking: A dozen documents are required to ship any consignment to an international destination and to create a tracking system. It requires close monitoring of each milestone to ensure the consignment reaches the destination on time.

‘Downstream Distribution’ in logistics

As the term suggests, it’s the final leg of the transit journey wherein the goods or consignment is moved from the distribution centre to the store or the end customer. This phase ensures that the goods are delivered to the customer ontime.

Last mile movement: The last mile delivery focuses on the movement of packages from a local warehouse or distribution centre to the end customer’s doorstep.

Individual package: Shipping involves bulk shipments, while delivery is only about a single package that is addressed to specific customers and comprises only the items that are ordered.

Local carriers: For delivery, the local carriers are involved in delivering the package to the addressee. This includes postal or private courier services.

Notification and alerts: During the delivery phase, customers look for notifications and real-time tracking to know where their consignment is and when it will reach them. The customer regularly receives updates via email, SMS alerts or information through tracking apps.

Shipping vs. Downstream Distribution

How is technology relevant to shipping and downstream distribution?

Technology in shipping

Tech plays a pivotal role in the shipping of consignments. It enables sellers to handle inventory efficiently with end-to-end visibility. The shipper easily optimises the transportation route, selects carriers and gets access to real-time information. 20Cube Logistics offers a digital collaborative platform MyHubPlus, that helps in labelling the goods, deciding on the route map, generating and uploading shipping documents and enabling track and trace for each shipment, providing operational efficiency.

Technology in Downstream Distribution

Technology helps last-mile delivery by selecting the best route to reduce delivery time, carbon emission and cost. 20Cube in collaboration with regional delivery partners helps reach difficult terrain and locations to achieve fast and cost-effective deliveries to meet customer expectations. Not only that, customers can also track and trace the real-time location through the MyHubPlus app to know the status of their consignment along with receiving regular notifications and alerts that keep them informed about the estimated delivery time.

Conclusion

Managing shipping and downstream delivery requires seamless coordination among multiple stakeholders within the supply chain network. While shipping handles the critical task of moving consignments from the port of origin to the port of destination, downstream distribution ensures these goods reach the final customer. At 20Cube Logistics, we provide comprehensive, end-to-end logistics solutions that leverage digital innovations like real-time tracking to guarantee safe and timely delivery. By recognizing and optimizing the distinct yet interconnected roles of shipping and downstream distribution, we empower all stakeholders to experience a smoother, more efficient, and a complete transaction process.