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Logistics
Logistics
In the world of supply chain, a product’s journey often involves multiple transportation modes,
customs regulations, and ports of entry in regions around the globe. Logistics includes the
planning, implementation, and management of this journey to ensure the smooth movement of
products from suppliers all the way to consumers.
At the heart of logistics lies the supply chain analyst, who helps navigate any complexities,
optimizes operations, and ensures a seamless flow with multiple logistical strategies. Let’s take a
peek into the world of logistics and the contributions of supply chain analysts.
Transportation
There are multiple modes of transportation that may be included in supply chain logistics. Let’s
see when and why each mode is used.
Road transportation: Trucks and vans are commonly used for transporting goods over short to
medium distances within a country. They offer flexibility and direct delivery options. Less-than-
truckload (LTL) and full truckload (FTL) shipping are fundamental concepts in road
transportation. These terms are frequently used to describe two distinct approaches to shipping
goods by road:
LTL shipping involves combining smaller shipments from multiple shippers into a single
truckload. This approach maximizes truck capacity and cost efficiency by sharing
resources. LTL works well for shipping smaller quantities of goods, optimizing space, and
reducing costs for each shipper.
FTL shipping involves using an entire truck to transport goods from a single shipper. This
is ideal when a shipper has enough goods to fill an entire truck. FTL shipments offer
faster transit times and reduce the risk of handling at multiple stops, ensuring fewer
opportunities for damage. They are also more expensive!
Rail transportation: Trains are efficient for long-distance transportation of bulk goods, such as
raw materials and heavy equipment.
Air transportation: Air cargo is ideal for expedited delivery of high-value and perishable goods,
ensuring quick cross-border shipments.
Sea transportation: Ships handle large volumes of goods for international trade, especially bulk
commodities and containerized cargo.
Courier and parcel services: Express delivery services offer fast delivery options for smaller
shipments, catering to the growing demand for e-commerce and also serving major
organizations.
Intermodal transportation: This refers to the movement of goods using multiple modes of
transportation, such as trucks, trains, ships, and airplanes, using a single, standardized container
or trailer that remains sealed throughout its journey. For example, containers of goods might be
transported by truck to a rail yard, loaded onto a train for the long-haul portion of the journey, and
then transferred back to a truck for the final delivery. This streamlined process reduces the need
for constant unloading and reloading of goods.
Multimodal transportation: This method also involves the use of multiple modes of
transportation, but it involves the use of different containers or packaging for each mode of
transport. A single transportation provider or logistics company typically manages the entire
journey, ensuring seamless coordination between various modes. For example, goods might be
transported by truck to a port, loaded onto cargo containers on a ship for an ocean voyage, and
then transferred from the cargo containers onto another truck for the final delivery.