Transportation is a key process in the logistics chain, which is involved at every stage, right from the manufacturing of the product, to its final delivery at the required location. The role that transportation has come to acquire in the recent times can be judged from the fact that freight transportation costs contributed to over 6% of the GDP of the United States in the past year. While the basic goal of transportation in the supply chain invariably remains ensuring that the good reaches the customer within the stipulated time, there are several subsidiary roles that are met with efficient transportation management. These range reduced inventory costs to better warehouse management.
The success of any supply chain can be judged from its transportation management. Wall-Mart is an ideal example of how the use of the simple technique of cross-dorking can make the entire transportation system responsive and streamlined. Another major role that efficient transportation plays in the logistics chain is the globalization of products. This is made possible by facilitating transportation of goods from countries with cheap labor like China and India, not just contributing to their economy, but also helping to create a channel of flow for these products.
There are various decisions that need to be made by both the carrier as well as the shipper for the proper functioning of any transportation system. The most important of these factors are those relating to cost. The carrier might need to incur a fixed operating cost in case of access to an operating facility, despite whether he is actually using the facility or not. Apart from that, the major cost incurred is trip-related, which covers labor and fuel costs. This can be minimized by strategizing on transportation routes, and minimizing labor by making use of advanced technologies like bar code reading and tagging.
When carefully planned, transportation can be a leading competitive strategy for a firm. The two most important factors that need to be optimized are transportation costs and customer responsiveness. Transportation managers are faced with various critical decisions, such as the ratio of outsourced transportation to company-owned transportation; whether or not to own and manage an independent transportation fleet; how to minimize the need for backup inventory by improving customer responsiveness, etc. This can be made possible with the use of information technology including satellite communication with on-road vehicles.
Mclanetech Logistics Technology provides reliable and customized transportation management software and systems for your business. For more details visit them at 4002 Central Pointe Parkway, Temple, TX 76504 or call at 1-800-989-7568.
The success of any supply chain can be judged from its transportation management. Wall-Mart is an ideal example of how the use of the simple technique of cross-dorking can make the entire transportation system responsive and streamlined. Another major role that efficient transportation plays in the logistics chain is the globalization of products. This is made possible by facilitating transportation of goods from countries with cheap labor like China and India, not just contributing to their economy, but also helping to create a channel of flow for these products.
There are various decisions that need to be made by both the carrier as well as the shipper for the proper functioning of any transportation system. The most important of these factors are those relating to cost. The carrier might need to incur a fixed operating cost in case of access to an operating facility, despite whether he is actually using the facility or not. Apart from that, the major cost incurred is trip-related, which covers labor and fuel costs. This can be minimized by strategizing on transportation routes, and minimizing labor by making use of advanced technologies like bar code reading and tagging.
When carefully planned, transportation can be a leading competitive strategy for a firm. The two most important factors that need to be optimized are transportation costs and customer responsiveness. Transportation managers are faced with various critical decisions, such as the ratio of outsourced transportation to company-owned transportation; whether or not to own and manage an independent transportation fleet; how to minimize the need for backup inventory by improving customer responsiveness, etc. This can be made possible with the use of information technology including satellite communication with on-road vehicles.
Mclanetech Logistics Technology provides reliable and customized transportation management software and systems for your business. For more details visit them at 4002 Central Pointe Parkway, Temple, TX 76504 or call at 1-800-989-7568.
