The Role of Transportation in Logistics Chain

THE ROLE OF TRANSPORTATION IN LOGISTICS CHAIN
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The Role of Transportation in Logistics Chain
Abstract
The operation of transportation determines the efficiency of moving products. The progress in techniques and management improves the moving load, delivery speed, service quality and etc. Transportation takes a crucial part in the manipulation of logistic. Reviewing the current condition, a strong system needs a clear frame of logistics and proper transport techniques to link the two together. The objective of the paper is to define the role of transportation in logistics for the reference of further improvement.
* Introduction
The trends in globalization and nationalization over the recent decades have seen the growth in importance of logistic management. Industries use logistics to optimize their production and distribution approaches through management techniques initiated to promote their efficiency and competitiveness. The vital element in a logistical chain is the transport system which brings together separate activities. In other words, transportation occupies close to a third of the amounts of logistical costs. Transportation is required within the production processes, from the manufacturing of products to the delivery of these products to consumers. An effective coordination of these components brings maximum benefits to an organization. This paper, therefore, seeks to redefine the role of transportation within a logistics system through the analysis of several applications. The paper will provide a conceptual framework to develop further the processes involved in a logistic chain.
* Overview of Logistics
* Definitions
According to Dowlatshahi (2010), logistics is defined as the part of a supply chain process that makes plans, implements, and controls the efficiency of a forward and reverse flow and the shortage of goods and information from a given point of origin to the point of consumption that meets the needs of customers. Logistics, therefore, described the process of products moving in and out an organization. Inbound logistics represents the movement of goods received from a supplier. On the other hand, material management entails the movement of goods and their components within an organization. Physical distribution infers to the flow of goods outwards from an assembly line to the consumers. A supply-chain management links logistics directly with the user’s communication networks through organizations engineering staffs. Commonalities determine the fact that logistics is a process of ensuring the movement and handling of materials and goods, from the beginning point to the end of the production process.
* Components of a Logistical System
The components of a logistics system include information systems, resources, and infrastructures. Logistics systems support the movement of products and materials from different points of input through the production process and lastly to the consumers, an aspect that also considers the disposal of wastes and reverses flows. The system includes activities undertaken by the users of services and the operators of external service givers. On the other hand Hannigan & Mangan (2011) posits that logistic systems and services comprise of different physical activities such as the transportation and storage of these products as well as non-physical activities such as the selection of contractors, supply chain designs, and freight negotiations. Vehemently, most of the logistical operations and systems are bi-directional. This infers to the inclusion of information system mechanisms in influencing the management’s decision making. Infrastructural components of a logistical system include financial resources, human resources, warehouses, packaging materials, and transport and communication systems.
* History and Advancement of Logistics
Logistics according to Simon (2013) was a military approach that ensured soldiers were taken to the battlefield during battles. This has however changed since logistics is currently considered as a significant element in the modern production processes. The background of logistical developments can be traced back to the recession that hit America in 1950. This saw industries place their priorities on the circulation of goods. Before the recession that hit America in 1950, logistics in the process of production was regarded as evil. The aftermaths of the recession yielded the application of more research studies on logistics. Following the rise in petroleum prices in 1973 resulted in the growth of logistical activities on enterprises. The process grew slowly into the market leading to the release of transportation control systems, pressures on higher stagflations, and stiff competition from the third world economies on materials and products (Simon, 2013). The tendencies of logistics have further grown in the 21st century, hence making logistics circulation an essential element in organizations activities aimed at sustaining competitiveness.
* Interrelationships between Transportation and Logistics
Logistics only brings its advantages to an organization if well-structured transportation systems are developed. In other words, a good transportation system links logistical activities that provide efficiency, promote service quality, and reduce operational costs (Morash & Clinton, 2012). This denotes the need to improve transportation systems to ensure that both the public and private sectors operate efficient logistics systems.
* Transport Costs and Goods Character in Logistics
The transportation systems remain a significant economic activity among the mechanisms of a logistical business system. Close to two-thirds of organizations logistics expenses are spent on transportation. Transport systems, therefore, ensure that products and goods are moved from one place to the other, thus providing a timely and regionally efficacy that promoted value additions on products. Transport additionally affects the outcomes of a logistical activity by influencing the processes of production and sales. Moreover, according to Bhatnagar & Chee-Chong (2011) the value of transportation varies across different industries.
* The Effects of Transportation on Logistics Activities
Transport systems play a significant role in connecting several steps in converting resources into end products of useful goods for the consumers. It is in the planning of transport functions into a system of good movement that minimizes costs and maximizes service provision to customers, an element that constitutes the logistical concepts of business. An efficient transport system ensures company produce, stores, transportation, wholesale, and retail products. Manufacturing and production plants are therefore required to assemble their materials, supplies, and components with or without material handling processes, storages, and processing within the plant's inventory (Holcomb & Manrodt, 2000). On the other hand, warehousing services involve transport systems. Warehousing provides consolidated facilities and distribution centers that serve as transport outlets.
* The Role of Transportation in Service Quality
Transportation plays a significant role in the logistical system, an element that is more complex than the carrying of goods for businesses. The complexity of this process is ascribed to the quality of management in the process. A well-managed transport system, therefore, ensures that products are carried in the right places at the required times in a bid to meet the demands of customers (Verdonck et al, 2013). Additionally, an efficient transport system builds stronger foundations and bridges between the producers of a product and its consumers. Given this, transportation is an ingredient of efficacy in business logistics since it expands the functions of a logistics system.
* Form of Logistics Operations
* Maritime Logistics
The maritime industry plays an indispensable role in an international freight system. Maritime logistics provides cheaper and higher carrying capacity transportation systems for consumers, thus establishing its significance in the carriage of goods and materials such as grains and crude oil from one point to the other. However, the disadvantage of this system remains in the fact that it takes a considerable amount of time to transport products and its schedules are strongly affected by weather factors (Verdonck et al, 2013). In a bid to save costs and enhance the competitiveness of the maritime logistics industry, firms engage in the use of large-scale ships that transport large products.
* Air Freight Logistics
On the other hand air freight services are equally essentials for several industries in completing their supply chain functions. Air freight services provide delivery at the faster speeds, thus ensuring the security of goods, lower risk of damages, regular destinations, and flexible access to businesses. One of the characteristics of an air freight logistics system is evident in the fact that airplanes and airports are mostly separated, an aspect that allows for the speedy delivery of goods to far destinations (Spalding, 2012). The future trends of developments in the air freight industry lie in the integration of other transport modes, the inclusion of mergers with other air transport entities, and the internationalization and alliance of these entities with others.
* Land Logistics
Land logistics is another vital link in all the logistics activities. Land logistics extends the processes involved in the delivery of services for both the maritime and air transport systems. The most significant distinctive elements of land logistics are in the high accessibilit...