NATIONAL AVIATION COLLEGE MANAGEMENT

MA PROGRAM IN LOGISTICS AND SUPPLY CHAIN MANAGEMENT

TRANSPORTATION SYSTEM & MANAGEMENT

ARTICLE REVIEW ON

THE ROLE OF TRANSPORTATION IN LOGISTICS CHAIN

By: Yung-yu TSENG, Michael A P TAYLOR & Wen Long YUE

Prepared by:

Tilahun Mengesha GSC/114/15

Instructor:

Nurizeman (PhD)

April, 2023
Addis Ababa

TRANSPORTATION SYSTEM & MANAGEMENT A

Abstract

Reviewing the current condition, a strong system needs a clear frame of logistics and a proper
transport implements and techniques to link the producing procedures. The objective of the paper
is to define the role of transportation in logistics for the reference of further improvement. The
research was undertaken to assist logistics managers, researchers and transportation planners to
define and comprehend the basic views of logistics and its various applications and the
relationships between logistics and transportation.

Introduction

Since logistics advanced from 1950s, there were numerous researches focused on this area in
different applications. Due to the trend of nationalization and globalization in recent decades, the
importance of logistics management has been growing in various areas. For industries, logistics
helps to optimize the existing production and distribution processes based on the same resources
through management techniques for promoting the efficiency and competitiveness of enterprises.
The key element in a logistics chain is transportation system, which joints the separated
activities. Transportation occupies one-third of the amount in the logistics costs and
transportation systems influence the performance of logistics system hugely. Transporting is
required in the whole production procedures, from manufacturing to delivery to the final
consumers and returns. Only a good coordination between each component would bring the
benefits to a maximum.
The purpose of this paper is to re-clarify and redefine the position relationship between
transportation and logistics systems through collecting and analyzing various application cases
and practices in logistics from literatures. It is to provide a general framework and expect to be
referred for further development and researches.

Analysis

The article highlights the various functions of transportation in the logistics chain. Firstly,
transportation plays a vital role in moving goods from the point of production to the point of
consumption. It enables the delivery of goods to customers on time, which is critical for
maintaining customer satisfaction. Secondly, transportation helps in reducing inventory costs by
enabling the timely delivery of goods. Thirdly, transportation facilitates the movement of goods

TRANSPORTATION SYSTEM & MANAGEMENT 1

between different stages of the logistics chain, which helps in improving the overall efficiency of
the system.

The article also discusses the various modes of transportation, including air, sea, road, and rail. It
highlights the advantages and disadvantages of each mode and their suitability for different types
of goods and distances. For instance, air transportation is suitable for high-value goods, while sea
transportation is suitable for bulky goods that are not time-sensitive.

The article further examines the role of information technology in transportation and logistics
chain. It discusses how technology can be used to improve transportation operations, including
route planning, scheduling, and tracking. It also highlights the importance of collaboration
between different stakeholders in the logistics chain, including suppliers, manufacturers, and
retailers, to ensure the smooth flow of goods.

One of the strengths of the article is its comprehensive coverage of the role of transportation in
the logistics chain. It provides a detailed analysis of the various functions of transportation and
how it affects the performance of the entire system. The article also provides valuable insights
into the different modes of transportation and their suitability for different types of goods and
distances.

Another strength of the article is its emphasis on the importance of collaboration between
different stakeholders in the logistics chain. It highlights the need for cooperation and
coordination to ensure the smooth flow of goods and improve the overall efficiency of the
system. The article also discusses the role of technology in transportation and logistics chain,
which is becoming increasingly important in the current digital era.

Discussion

The authors discuss that the integration and promotion of business activities have to involve
transportation systems at various stages. The integration of various applications brings the
convenience through promoting the system of information flow and business operations.
Customers and firms could make business more efficient and easier through the help of e-
commerce and the Internet. However physical delivery still relies on the transportation system to
finish the operations. The cost of transportation operation may be one-third of logistics costs.

TRANSPORTATION SYSTEM & MANAGEMENT 2

Meanwhile, transportation systems and techniques are needed in almost every logistics activity.
Thus the reform of business patterns has to consider transportation systems.

Conclusion

Overall, the article "The Role of Transportation in Logistics Chain" by Tseng et al. (2005)
provides a comprehensive analysis of the importance of transportation in the logistics chain. The
article highlights the various functions of transportation and their impact on the performance of
the entire system. The article also provides valuable insights into the different modes of
transportation and their suitability for different types of goods and distances. However, the
article could be strengthened by including more empirical evidence to support its arguments.

Citation:

Tseng, Y. Y., Yue, W. L., & Taylor, M. A. P. (2005). The role of transportation in logistics
chain. Journal of Transport Literature, 1(1), 47-61. https://scholar.google.com/scholar?
hl=en&as_sdt=0%2C5&q=Logistic+transportation+pdf&btnG=

TRANSPORTATION SYSTEM & MANAGEMENT 3