Transportation and How it Affects Logistics

611 Words2 Pages
Transportation is one of the largest industry in the world. It is the most costly and time consuming of the supply chain. Transportation refers to the movement of a product from one destination to another. This process begins from the supply chain to the consumer, for as we know that products are rarely produced in the same location. We as people depend on transportation. Because it moves our goods and it moves us as a 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 major role in connecting it all together. Supply chain management is defined as a continuously evolving management philosophy that seeks to unify the collective productive competencies and resources of the business functions found both within the enterprise and outside in the firm’s allied business partners located along intersecting supply channels into highly competitive, customer-enriching supply system focused on developing innovative solutions and synchronizing the flow of marketplace products, services, and information to create unique, individualized sources of customer value (Ross, 1998).
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.
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