Transportation is key in determining the efficiency of logistics, which involves the movement of products, goods and materials. There has been much progress in terms of the management principles and techniques that serve as the foundation of logistics systems. The proper use of management principles facilitates improvements in delivery speed, load movement, operation costs, service quality, facilities usage and saving energy.
The Role of Logistics
Logistics incorporates processes which move and handle materials and goods, starting at production, through the sales process through to customer satisfaction. The process also includes the point of waste disposal. The most effective logistics systems aid in adding business and facilitating competitiveness.
Transportation and Logistics
Logistics systems require well developed transportation processes to function properly. Without transportation, logistics cannot perform adequately. Great transport systems for logistics provide a higher degree of efficiency through reduced operational costs, and by promoting service quality. Both private and public sectors need to contribute for improved transportation systems. Well operated logistics processes can increase the competitiveness of any form of enterprise.
Increased Logistics Efficiency
Increased logistics efficiency involves anticipating how customer requirements evolve and then acquiring the funding, information, materials, technologies and staff necessary to meet the needs of customers. An improved transportation system is essential to customer fulfillment, through optimized goods and services production processes.
Transportation Costs and Logistics
The most important economic factor in business logistics processes is the transport system. This is because it is estimated that approximately one to two thirds of logistics enterprise expenses are spent in connection with transportation. At times, objective market restrictions may need to be addressed with regard to transportation costs. When logistics adjusts transportation costs, the system becomes more efficient, thereby also increasing production delivery.
Influence of Transport on Logistics
Transportation is a key component of all logistics activities. Therefore, transport methods greatly influence production processes and sales systems. The value of transportation will vary according to each industry. For example, small volume products that are high value and yet low weight, will have lessened transportation costs. Larger, heavier, lower valued products will incur a much larger part of the production budget, with increased transportation costs. These are factors that need to be considered when evaluating sales and profits. When transportation is more efficient, it generally costs less, increasing the bottom line for any enterprise.
Transport Logistics Research
Research is a continual effort by managers and planners, to fine tune and further define, so as to fully comprehend the role of logistics in production and business. The various relationships and applications between transportation and logistics are affected through thorough analyses, in order to effectively increase efficiency by logistics.