Transportation In Logistics

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Introduction: Transportation is the movement of products from one node in the distribution channel to another. By providing for the swift and uninterrupted flow of products back and forward through the distribution channel, transportation provides companies distinct markets on an equal footing. Transportation also permits wider and deeper penetration of new markets far from the point of production. In addition, by maximizing vehicle and materials handling capacities and cargo requirements, effective transportation permits distributors to leverage economies of scale by lowering the per unit cost of transporting the product and also to reduce selling price by holding costs down, thereby providing for more competitive product positioning. It is the most important component of logistics cost and usually accounts for 1/3 - 2/3 of total cost. Fundamental logistics are: where should resources be moved to, and by what mode and route; when should resources be moved. The “where”, question includes the topics of terminal location, vehicle routing, and shortest path methods and network flow allocation. The “when” question includes the topic of distribution rules. Definition : Transport or transportation is the movement of people and goods from one location to another (according to wikipidea). Transportation is the movement of products from one node in the distribution channel to another. Transport involves the following: • equipment (trucks, planes, trains, boats, pipeline), • people (drivers, loaders & un-loaders), and • decisions (routing, timing, quantities, equipment size, transport mode). Role of transportation in logistics: Peter Drucker's comment on distribution as the `last Dark Continent' for business to conquer resulted in an important management function that has multiple strides ranging from integrated logistics management to supply chain management.

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