A Brief History of Transportation

The Role of Transportation on Logistics A simple way of defining logistics is about the procedures of transporting and handling materials and goods, wherein it entails moving the materials and goods from a point of origin, like for example the storage area of the suppliers, to the storage space of a company and from the … Continue reading “A Brief History of Transportation”

The Role of Transportation on Logistics A simple way of defining logistics is about the procedures of transporting and handling materials and goods, wherein it entails moving the materials and goods from a point of origin, like for example the storage area of the suppliers, to the storage space of a company and from the company to the end-users, who are 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. Logistics services refer to the movement of goods from the point of origin through production until the goods reach the customers and which covers storage, inventory control, transport, as well as the selection of contractors and freight negotiations. 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 refers to physical and financial aspects which are human resources, financial resources, packaging materials, warehouses, transport, as well as 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. 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. 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.
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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. 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.What You Should Know About Services This Year