Effects 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 services, information systems and infrastructure are the three important components that are linked with each other in logistics. The movement of goods from the point of origin through production until the goods reach the customers refers to logistics services and within this movement, 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. Infrastructure covers human resources, financial resources, packaging materials, warehouses, transport and communication.

For as long as the transportation system is well-planned, well-designed, and well-developed, without such, logistics cannot meet its full advantage, which is having an efficient transport and material handling of goods, attaining reduce operation cost and promote service quality. About two thirds of the logistics’ expenses are basically invested into transportation and this is to succeed in its logistics operation which in turn influences production and sale. 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, but 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.
A Beginners Guide To Transportation

An extension service delivery of good or products from air and maritime transports is land logistics, which makes use of the road freight transport system, railway transport system, and pipeline system. 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; while 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. 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.Discovering The Truth About Businesses