A Quick Overlook of Options – Your Cheatsheet

The Role of Transportation on Logistics Understanding logistics in a simpler manner is all about a process of transporting and … Continue reading >A Quick Overlook of Options – Your CheatsheetContinue reading >A Quick Overlook of Options – Your Cheatsheet

The Role of Transportation on Logistics Understanding logistics in a simpler manner is all about a process of transporting and handling materials and goods 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. Logistics is made up of three important components that are related and interlinked with one another and they are: 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. The flow and processing of logistics information for decision making and management lies on the information systems, and the purpose of which is to provide the essential data for the logistics services to proceed and complete its main function and objective. Infrastructure covers 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. In order to succeed in its logistics operation, which in turn influences production and sale, two thirds of the logistics’ expenses are basically invested into transportation. The transportation cost takes up a minimal part in the sale’s cost for goods or products that are of small volume, low weight but of high value, while for heavy and low-valued goods or products, the transportation cost uses a great part of sales and affects profits. For as long as there is quality management in the transportation system, due to the fact that the system is a complex operation, goods can be transported to the right place at the right time, which, in effect, brings out service quality and efficiency.
Smart Ideas: Services Revisited
Land logistics is an extension service delivery of good or products from air and maritime transports and uses road freight transport system, railway transport system, and pipeline system. The advantages of the road freight transport system are cheaper investment, accessibility, mobility, and availability are high, but the system has low capacity for delivery, low safety of goods and slow speed, while the railway transport has great carrying capacity, low energy consumption, not affected by weather conditions, but high cost of facilities and maintenance, not flexible in terms of urgent schedules, and time consuming in arrangement of railway carriages. With respect to the pipeline system, the advantages are high capacity, not affected by weather conditions, cheap operational fee, and continuous transport, but its disadvantages are expensive infrastructure, hard to supervise, regular maintenance needs.Smart Ideas: Services Revisited