Transportation and How it Affects Logistics

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Transportation is one of the largest industries in the world. It is the most costly and time consuming of the supply chain. Transportation refers to the movement of products and raw materials from one destination to another. This process begins from the supply chain to the shipping of the finished product to the consumer. For we know that products are rarely produced in the same location. We as people depend on transportation because it moves goods and people from one place to another.

Transportation is a key element in the logistic chain. It joins together those components that are considered to be separated. In order for transportation and logistics to work together successfully, there must be good management between them. It plays a major role in connecting it all together. What is logistics? Logistics is the management of freights, warehousing of materials, production and inventory. Logistics and the supply chain work hand in hand. Supply chain management is defined as” a continuously evolving management philosophy that seeks to unify the collective productive competencies and resources of the business functions found both within the enterprise and outside in the firm’s allied business partners located along intersecting supply channels into highly competitive, customer-enriching supply system focused on developing innovative solutions and synchronizing the flow of marketplace products, services, and information to create unique, individualized sources of customer value”( Shehadeh, 2009).

According to the textbook, the goal of logistics is to support procurement, manufacturing, and customer accommodation supply chain operational requirements. Logistics is the leadership responsibility to design and administer systems to cont...

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...iness Publication, Inc., USA.

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