The Importance Of Logistics Management And Transportation Management

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Due to the increasing numbers of the hypermarkets in Amman, the importance of logistics management and transportation management has been growing in various areas. For Fast moving consumer goods industry logistics helps to improve and monitor the distribution and delivery processes based on management principles and techniques for developing the overall performance. Transportation system is playing a big role in the quality of goods being delivered to hyper markets and this research concentrates on a very important sector of goods which is FMCG. Effective transportation system can enhance the delivery process. Traffic congestion, for example, reduces the reliability of delivery schedules (Fowkes et al 2004) which can subsequently reduce the …show more content…

Its complexity can take effect only through highly quality management. By means of well-handled transport system, goods could be sent to the right place at the right time in order to satisfy customer demands. In Addition Transportation is the base of efficiency and economy in business logistics and expands other functions of logistics system. (Michael, 2005).

A study about the quantitative role of transportation costs evaluated the quantitative effects of introducing costs of transportation into an international trade model. This study shows that Costs of transportation have substantial long-run effects on welfare and may impact on the pattern of trade. (Elisabetta et al., 2002).

Transportation cost is one of the challenges which affect the logistics because rising fuel prices are increasing financial pressures on businesses and if the prices continue to increase the production processes and the manufacturing processes will shift to a more local focus because the transportation cost will be too high .(Evas et

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