The Role of Transportation on Logistics
A process of transporting and handling materials and goods is referred to as logistics, coming from a point of origin and ending at the point of the customer’s possession, which entails in between these points – the movement of the materials and goods from the suppliers, followed by the movement of the materials and goods from supplier to a company and from the company to the hands of the customers, but within these movements are other components that play a role in logistics
There are three important components of logistics that are interlinked with each other: logistics services, information systems and infrastructure. Logistics services cover this scope of movement flow – movement of goods from the point of origin through production until the goods reach the customers and within this flow, storage, inventory control, transport, as well as the selection of contractors and freight negotiations are included. Basically, the movement and processing of procured information is essentially needed for decision making and management and this refers to information systems, the purpose of which is to provide the essential data for the logistics services to proceed and complete its main function and objective. With respect to infrastructure, its scope includes human resources, financial resources, packaging materials, warehouses, transport and communication.
A well-developed transportation system results in efficiency, reduce operation cost and promote service quality, without having a well-planned and well-designed transportation system, logistics will not be able to meet its full advantage. There is much greater investment of logistics’ expenses into transportation in order to succeed in its logistics operation which in turn influences production and sale. For heavy and low-valued goods or products, the transportation cost uses a great part of sales and affects profits, on the other hand, for goods or products that are of small volume, low weight but of high value, the transportation cost takes up a minimal part in the sale’s cost. Because the transportation system is in itself a complex operation, as long as there is quality management, the transport system will be well-handled and, with that, goods are sent into the right place at the right time, which, in effect, brings out service quality and efficiency.
How I Achieved Maximum Success with Transportation
Land logistics, which makes use of the road freight transport system, railway transport system, and pipeline system, is an extension service delivery of good or products from air and maritime transports. The railway transport has the following advantages: great carrying capacity, low energy consumption, not affected by weather conditions, but has the advantages, such as high cost of facilities and maintenance, not flexible in terms of urgent schedules, and time consuming in arrangement of railway carriages; on the other hand, the road freight transport system has these advantages: cheaper investment, accessibility, mobility, and availability are high, but the disadvantages are low capacity for delivery, low safety of goods and slow speed. High capacity, not affected by weather conditions, cheap operational fee, and continuous transport are the benefits that can be derived using the pipeline system, but it is an expensive infrastructure, hard to supervise, regular maintenance needs.Finding Parallels Between Transportation and Life