The action of transportation decides the effectiveness of moving products for transportation logistics companies. The advancement in the techniques and management principles amends the moving load, speed of delivery, quality of service, the costs of operation, utilization of facilities, and energy saving as well. Transportation takes a decisive part in the handling of logistics. Examining the present condition, a firm system needs a clarified frame of logistics. Transportation logistics companies also needs suitable transport implements and techniques to connect the producing processes.
Logistics have advanced since the 1950s. There were many researches centered on this area in different applications. Because of the trend in globalization and nationalization in recent decades, logistics management has become important and has been growing in different areas for transportation logistics companies. For businesses, logistics help to make the best use of the existing distribution and production procedures. These processes are based on the same resources through management methods for advancing the effectiveness and competitiveness of businesses. The main element in a logistics chain for transportation logistics companies is the transportation system. This connects the separated activities. Transportation takes one third of the amount in the costs of logistics and the transportation systems effects the performance the logistics system immensely. Transportation is necessary in the whole production processes for transportation logistics companies, from manufacturing or production, delivery, and the final customers and returns. Only a good coordination of each component working together could bring the benefits to a maximal.
There are three components of this system that are closely connected which are information systems, infrastructure/resources, and logistics services. Here are is the interaction of the three main components in the logistics system as followed:
* Logistics services - This service support the movement of products and
materials from inputs through production to customers, as well as associated
reverse flows and waste disposal. They contain activities undertaken in
house by the consumers of the services, (for example inventory control or
storage at a manufacturer's plant) and the actions of outside service
providers. These services are also comprised of physical activities (for
example, storage or transport). They are also comprised of non physical
activities (for example, choosing contractors, freightage negotiations, or
supply chain plan or design). Most of these activities are bi management.
* Information systems - This includes management and modeling of making
decisions, and dealing with more important issues of which are tracing and
tracking. It supplies substantial information and advice in each step of
the interaction among the target stations and logistics services.
* Infrastructure - This comprises of financial resources, human resources,
warehouses, packaging materials, communications, and transport. Most fixed
capital is for constructing those infrastructures. They are specific
basements and foundations within the logistics systems.
Without well expanded transportation systems, logistics would not be able to bring its benefits into full play. A good transport system in logistics activities could supply improved logistics effectiveness, decrease operation cost, and advance service quality. The betterment of transportation systems needs the effort from both private and public section. A well managed logistics system could enhance both competitiveness of the government and businesses.
Posted by LeanCor Supply Chain Group
LeanCor Supply Chain Group is a trusted supply chain partner that specializes in lean principles to deliver operational improvement. LeanCor’s three integrated divisions – LeanCor Training and Education, LeanCor Consulting, and LeanCor Logistics – help organizations eliminate waste, drive down costs, and build a culture of continuous improvement.Facebook LinkedIn Twitter Google+