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Roles of transportation in logistics
The role of transportation in logistics and supply chain management
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Question 1: Why are organizations showing more interest in TMS (Transportation Management System) today compared to the past?
“If you cannot keep up with technology it will surely leave you behind”. Today’s technology can aid you in just about anything you can think of, this is especially true when it comes to the logistics of a supply chain. The Transportation Management System is a good example of such technology. Transportation costs are not cheap when it comes to moving products from point A to point B. The rising cost of fuel and the current economy have caused companies to look for better ways to do things while still reducing costs. I believe the first sentence says it all, things have changed in the business world from the way things were done in the past. Customer demand is driving the boat when it comes to implementing TMS into transportation processes. TMS offers many benefits that allow companies to meet these customer demands. TMS optimizes all aspects of transportation from global, air, land, and sea while also managing the flow of transportation related information with one major thing in mind, reducing costs. Companies that can implement TMS can essentially become more competitive in the market as compared to their competition that does not. This connectivity of system improvements has sparked the interests of organizations and is able to help them get out of the logistics stone age.
Question2: Describe the major types of tasks a TMS can offer in helping to achieve transportation excellence.
Transportation plays an important part of an organizations logistics process. The ability to conduct your transportation processes efficiently makes a worl...
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...ogy that you have it will surely pass you by, sound familiar? The sense of a quick dollar in the companies’ pockets seems to hinder their ability to realize the full capabilities of TMS and what it can do for them in the long-run.
Works Cited
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McCrea, Bridget, (2010 Feb) TMS: Your key to the new economy, Logistics Management (2002): Highland Ranch, Vol. 49, Iss. 2 Pg. 38, 1pgs. Retrieved 18 July 2011, From.
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On-site transportation service is currently favorable with managers at Deere’s plants and could be improved by standardizing the ...
The North American transport system is run by several different agencies, each one having its own important part in making it all run smoothly and efficiently . There are also several policies that have been put in place to keep the transportation system working for the good of everyone. The agencies involved keep very good records of all the types of transportation that make up the system, which makes it easy for anyone to be able to see all the different statistics associated with the system. The Freight broker business is another important part of the transportation system, the following paragraphs will tell how all these things work together.
Having spent the better part of 35 years in the shipping and cargo field, Craig Raucher has established many non-asset and asset based operations for DHL Worldwide Express, Total Freight Solutions Global, and Corporate Express Delivery Systems. His ability to determine whether the third party logistics company will retain and use their own assets or others has increased the profits of each
Founded in 1907 as a messenger company, United Parcel Service has grown into a world renowned provider of specialized transportation and logistics services. This multi-billion corporation enables and manages the flow of goods, information, and funds to over 200 countries and territories around the globe (UPS.com, 2013). Air, freight, oceanic is just a few of the modes that UPS uses to move the flow of goods around the globe. The company structure of UPS entails operations in three segments: U.S. Domestic Package operations, International Package operations, and Supply Chain & Freight operations. It’s just about an everyday occurrence to see an brown UPS truck on the road as we go about our everyday lives, the U.S. Domestic Package operations are comprised of delivery of documents, packages, and letters around the United States. The International Package operation delivers specifically outside the United States. Providing deliveries to the world’s major business hubs up to three times a day, UPS can deliver packages to at the best time possible for their customers. UPS has teamed up with the U.S. Commercial Service, an agency of the U.S. Department of Commerce, to help customers get started exporting or increase their sales to new global markets (UPS.com, 2013). Partnering within a supply chain can prove to be very important in the success of the overall supply chain. Communication within a supply chain that flows freely between partners reduces in-efficiencies such as excess inventory (bullwhip effect), and lost profits. The Supply Chain & Freight operation within UPS entails forwarding and contract logistics operations and UPS Freight. As a freight forwarder they organize shipments from various sources to their final p...
Transportation Management Systems, also know as TMS, is a software application designed to manage and optimize inbound and/or outbound transportation operations (Transportation Management Systems). A TMS tends to sit in the middle of an ERP and a WMS module. Implementing TMS could provide your organization with potential benefits such as warehouse efficiency, inventory reductions, cash flow improvements, and new delivery capabilities. In regards to the future, TMS is on the verge of evolution, with improvements in the forthcoming to look forward to such as cloud-based TMS, full integration with pioneering technology, and the use of ‘meta intelligence’ to leverage TMS (The Future of Transport Management Systems). Within my essay,
Finding ways to move goods from one point to another at a reasonable cost and within an acceptable time frame is a growing challenge for global businesses today. The costs and risks associated with transportation are increasing with the advent of globalization and low-cost-country sourcing. Even for companies with local operations only, they have to supply their products to various parts of a country which increases the costs and risks. Since the cost of gasoline has been on an upward trend, high level of efficiency in transportation is required to lower the costs involved and the risks associated with the costs. Costs concepts in transportation include economic, social and accounting costs. The risks and costs involved increases if the various modes of transport are used. There has been concern over many businesses failure to strategically think when they employ multimodal transportation services. Many businesses prefer the least expensive multimodal model instead of choosing the most effective; this trade-off is very expensive with hidden costs and risks increasing significantly (Molenaar, Anderson, Schexnayder, National Research Council (U.S.)., National Cooperative Highway Research Program., American Association of State Highway and Transportation Officials., & United States, 2010).
The transportation & logistics industry is a form of industry that keeps people and products on the move, it includes airlines and airports, shipping companies, logistics service providers and other transportation companies. That’s why it is considered the backbone of modern global supply chains. In a place like the Kingdom of Saudi Arabia that has diverse geography with a dry desert and great temperature extremes and a large area of about 2.1 million square km, a transportation & logistics industry is a necessity. Imagine you need to move from one city to another (of course it will be so hard to cross large areas of empty deserts) you have only two options to transfer from one to another city; the first option is to drive and the second option is to fly and ship your car via a car transport carrier. The harsh climate in Saudi Arabia makes people to prefer using the second option, this cause the market of transport market to enlarge. Albassami International Group is one of the biggest companies established to satisfy those needs. It is considered one of the biggest companies specialized in vehicle transportation in the Middle East. The philosophy of the company is to serve the needs of the clients over the span of thirty two years, throughout which they constantly had an eye to the future by evaluating the most appropriate ways in which to make transporting clients’ vehicles via the best and safest answer. They operate round the clock to serve clients at all times.
Private persons, big and small businesses at a point would have to either send or receive parcels, shipment, among other things. This cannot be done without the help of cargo companies, which are highly involved in the process of transportation of goods and services from one point to the other, but in short and long distances. And the demand to have this parcel and shipment delivered in a faster and more secured way , has brought about a high competition among several companies in the world , and they all have adopted both similar and also different measures to tackle the issues they deal with in the delivering order and tracking issues.
Some manufacturing companies, commercial enterprises began to use modern logistics management concepts, methods and techniques, the implementation of logistics process reengineering and outsourcing. Traditional transportation, warehousing, freight forwarding companies implement functional integration and extension services to accelerate the transition to a modern logistics enterprise. A batch of new logistics enter...
Zanjirani F., Rezapour, S. & Kardar, L. (2011) Logistics operations and management concepts and models, 1st ed. London ; Elsevier.
Southern, R. N. (2011). Historical perspective of the logistics and supply chain management discipline. Transportation Journal, 50.1, 53+
The development of every nation hinges on the effectiveness of their transportation systems. Movement of goods, services and people to and from locations is made possible by transportation systems. The importance of effective transportation systems cannot be over-emphasized. Many countries face transportation problems and my country Ghana is no exception. A trip of about 30 minutes usually takes about an hour or more due to traffic jams. This is seriously impacting productivity and has become a topical issue in the country. The situation is the same in Uganda where I currently work. To this end, Transportation Engineers are needed to design roads/ highways that will stand the test of time, plan effective traffic management systems to reduce
In today's changing business environment, information technology plays an incredibly important role in almost every aspect of the day to day life of almost every industry. The transportation industry is, of course, no different. From the transport of goods from manufacture, to warehousing, to retail, to end-user, the industry relies on information technology to get things done. The transportation of people is the exact same; incredibly important to get done yet impossible without the impact of information technology.
Coyle, J., Langley, C., Gibson, B., Novack, R. and Bardi, E. (2008).Supply Chain Management: A Logistics Perspective. 8th ed. Cengage Learning, p.366.
My experience and erudition is my strength which I wish to embolden and use to my advantage. in the concentartions “Transportation and Logistics” and “Inventory Management”, are a combination of inventory ,logistics and management concepts, wherein I seek expertise. For that, I look forward to learning from the acclaimed faculty at your university, prof ______________ and _______. I am excited that their research interests perfectly match my own.