Essay on Transportation and How it Affects Logistics

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Transportation is one of the largest industries in the world. It is the most costly and time consuming of the supply chain. Transportation refers to the movement of products and raw materials from one destination to another. This process begins from the supply chain to the shipping of the finished product to the consumer. For we know that products are rarely produced in the same location. We as people depend on transportation because it moves goods and people from one place to another. Transportation is a key element in the logistic chain. It joins together those components that are considered to be separated. In order for transportation and logistics to work together successfully, there must be good management between them. It plays a…show more content…
To achieve the lowest total cost means that financial and human assets committed to logistics must be held to an absolute minimum (Pieplow, Daniel, & Calhoun [Pg. 29]). SCM can be divided into three main groups: purchase, manufacture, and transport (Thomas et al., 1996). The focus is on transportation. There are different modes of transportation. These modes of transportation fall under three basic types and they are: land (road, rail and pipelines), water (shipping) and air. Transportation plays a connective role among the several steps that result in the conversion of resources into useful goods for the ultimate consumer. It is the planning of all these functions and sub-functions into a system of goods movement in order to minimize cost and maximize service to the customers that constitutes the concept of business logistics. The system, once it’s put in place, must be effectively managed (Fair & Williams, 1981). What are the advantages and disadvantages of these modes of transportation in logistics? Initially, there is the mode of land transportation. Roads, rails and pipelines fall under this category. These land logistics are very important because they extend the delivery services for air and water transport from airports and seaports. The main transport mode of land logistics are railway, road freight and pipeline transport. The advantage of railway transport is that it has carrying capacity and lower influences by weather conditions
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