The Role of Transportation in Logistics Chain (Research Paper Sample)
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THE ROLE OF TRANSPORTATION IN LOGISTICS CHAIN
The Role of Transportation in Logistics Chain
The operation of transportation determines the efficiency of moving products. The progress in techniques and management improves the moving load, delivery speed, service quality and etc. Transportation takes a crucial part in the manipulation of logistic. Reviewing the current condition, a strong system needs a clear frame of logistics and proper transport techniques to link the two together. The objective of the paper is to define the role of transportation in logistics for the reference of further improvement.
The trends in globalization and nationalization over the recent decades have seen the growth in importance of logistic management. Industries use logistics to optimize their production and distribution approaches through management techniques initiated to promote their efficiency and competitiveness. The vital element in a logistical chain is the transport system which brings together separate activities. In other words, transportation occupies close to a third of the amounts of logistical costs. Transportation is required within the production processes, from the manufacturing of products to the delivery of these products to consumers. An effective coordination of these components brings maximum benefits to an organization. This paper, therefore, seeks to redefine the role of transportation within a logistics system through the analysis of several applications. The paper will provide a conceptual framework to develop further the processes involved in a logistic chain.
* Overview of Logistics
According to Dowlatshahi (2010), logistics is defined as the part of a supply chain process that makes plans, implements, and controls the efficiency of a forward and reverse flow and the shortage of goods and information from a given point of origin to the point of consumption that meets the needs of customers. Logistics, therefore, described the process of products moving in and out an organization. Inbound logistics represents the movement of goods received from a supplier. On the other hand, material management entails the movement of goods and their components within an organization. Physical distribution infers to the flow of goods outwards from an assembly line to the consumers. A supply-chain management links logistics directly with the user's communication networks through organizations engineering staffs. Commonalities determine the fact that logistics is a process of ensuring the movement and handling of materials and goods, from the beginning point to the end of the production process.
* Components of a Logistical System
The components of a logistics system include information systems, resources, and infrastructures. Logistics systems support the movement of products and materials from different points of input through the production process and lastly to the consumers, an aspect that also considers the disposal of wastes and reverses flows. The system includes activities undertaken by the users of services and the operators of external service givers. On the other hand Hannigan & Mangan (2011) posits that logistic systems and services comprise of different physical activities such as the transportation and storage of these products as well as non-physical activities such as the selection of contractors, supply chain designs, and freight negotiations. Vehemently, most of the logistical operations and systems are bi-directional. This infers to the inclusion of information system mechanisms in influencing the management's decision making. Infrastructural components of a logistical system include financial resou...
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