The difference between a logistics center and a warehouse & distribution center?

09.02.2022

1. The concept

A logistics center is a general concept that refers to infrastructure for storing and handling goods. This concept covers warehouses, distribution centers, inland ports, bonded warehouses, tax-suspension warehouses, container yards, etc. All these above logistics facilities are considered logistics centers. 

The logistics center is a facility dedicated to logistical operations. If the goods are not located at the production, consumption, or on transport vehicles, they are in a logistics center. 

2. Scale and functions 

A logistics center refers to a large-scale, modernly designed, multi-functional infrastructure commonly. The concept can bring higher revenue for businesses by creating more value-added services.

The logistics center has several subdivisions and works according to experts as follows: 
 

  • Warehouse system
  • Container yard, bulk cargo
  • Areas for processing, value-added services: sorting, packing, labeling, etc.
  • Parking lots for transport vehicles, loading and unloading vehicles, and others in the center
  • Repair depot to maintenance and fueling
  • Internal roads and connections to public transport networks (roads, railways)
  • Office area: manage the logistics center, customs, quarantine, banking, insurance, cargo agency, service center, canteen, meeting room, etc.
  • Utility areas: electricity, water, drainage system, telecommunications, Internet, etc.

3. Vietnam's master plan for logistics centers

On July 3, 2015, the Prime Minister signed Decision No. 1012/QD-TTg approving the master plan on logistics center system development nationwide to 2020, with 2030 orientation. The primary mission is to develop a logistics centers network to meet the needs of domestic and foreign goods flows. 

Accordingly, there will be 21 logistics centers: three Grade I, fifteen Grade II, and three specialized logistics centers. Grade I centers will become network logistics hubs of Hanoi, Da Nang, and the Northeast of Ho Chi Minh City. Grade II logistics centers at regional, sub-regional levels and economic corridors, closely following and supporting the goods circulation from production, import to consumption, export. They will connect to seaports, inland ports, airports, international border gates and border economic zones, industrial parks, centralized commodity zones, etc.

Northern Vietnam will develop 7 Grade I & Grade II logistics centers and one specialized logistics center connecting to regional airports, sub-regions, and economic corridors.

Central Regional Viet Nam - Central Highlands will develop 6 Grade I & Grade II logistics centers and one specialized logistics center connecting regional airports, sub-regions, and economic corridors.

Southern Vietnam will develop 5 Grade I & Grade II logistics centers and one specialized logistics center connecting to regional airports, sub-regions, and economic corridors.

To know more about the logistics center and logistics center network in Vietnam, you could contact us at 1900 3133 or contact@als.com.vn for more details.

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