When transportation aligns with logistics management, it ensures the delivery of customers’ orders. Logistics management allows businesses to capitalize on reducing costs and increasing profitability. Without transportation, logistics management is an empty- ended process. The order must be sent to the right place and in a quick turnaround time in order to satisfy customers. As a result, transportation is the basis for efficiency in logistics management. No matter the destination, the logistics company should have a plan in place for distribution. Merchandise is transported through a variety of different shipping methods.
Air. Air transport is best reserved for inter island delivery. This transportation method is also preferable in emergencies, flooding or situations when road access is obstructed. The speed of delivery is very fast, so when an order ships behind schedule, air transportation can make up for lost time. Air transportation is very reliable, but it is also expensive. This method is best for expensive merchandise that is fragile or perishable.
Road. Road transport is the most popular transportation method for logistics management. Most logistics companies contract courier services to handing shipping. Courier services are cost-effective and efficient because it accommodates so many variables. Different size loads and routes are available for service. Additionally, the logistics company is not responsible for the drivers or vehicles used for transport. On the downside, operational control is handed over to the courier service. As a result, logistics companies should encourage feedback on the service provided by the courier service since there is direct contact between the two.
Rail. For logistics management, rail transportation offers an economical solution. Trains have a large loading capacity and are energy efficient. On the other hand, it is not very flexible due to the fixed routes of the train tracks. Rail transport is appropriate for large loads expanding long distances but is slow. It is reliable because it is not easily accessible by thieves without detection.
Sea. Sea transport for logistics management is considered the least efficient transportation method. It is slow and not reliable in ensuring merchandise arrives by the deadline. Since it is not deadline specific, the cost is very low. Sea transport is used when quantities are large, there is no urgency for delivery and the distance is long. A Bill of Lading is required for this method, so the terms are outlined and agreed to ahead of time, similar to a contract.
Transportation methods are responsible for moving merchandise from the warehouse to the ordering customer. The goal is to shipping merchandise damage-free and on time, ensuring the method used is cost effective. The logistics management company should select a transportation method that complements the inventory management system.
