SUPPLY CHAIN AND LOGISTICS MANAGEMENT

ROLE OF TRANSPORTATION
 ROLE OF TRANSPORTATION

 Transportation in a supply chain refers to the movement of products from one location to another, which begins at the
start of the supply chain as materials make their way to the warehouse and continues all the way to the end user with
the customer's order delivered at the doorstep.
 Transportation is the physical link connecting the firm to its suppliers and customers,

 In a nodes and links scenario, transportation is the link between fixed facilities (nodes).

 Transportation is an important supply chain driver because products are really not produced and consumed at same
location.
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Transportation also adds value to the product by providing time and place utility for the firm's goods.
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As firms engage in global competition, transportation costs are becoming even more significant.
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Outbound transportation was clearly the largest component of total physical distribution costs.
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Cost trade-offs abound in transportation and are typified by trading lower inventory costs for higher transportation
costs.
• Reduce Costs Operating a business is a costly affair already. With meticulous planning and plotting, one can save a lot
of money with a good transportation strategy in place.

• Transportation can involve a number of different modes (air, water, or land), fuel costs, and weight.

• To keep the cost of such logistics to a minimum, it is suggested to conduct a full-scale freight audit. Enhanced Customer
Service The customer should be the top-most priority of a business and by proxy, also the supply chain.

• Tightening up your transportation lines is one way to ensure that shipments reach your customer on time and in good
condition.

• For a large-scale operation, this tiny little detail is even more important. Segmenting Shipments Based on Priority A
business must understand the varying degrees of priority that shipments might have.

• Sometimes getting some packages quicker might be more important than getting all the packages at a moderate regular
time. This is why, segmenting ship
• Transportation provides the critical links between these organizations, permitting goods to flow between their
facilities.

• Transportation service availability is critical to demand fulfillment in the supply chain.

• Transportation efficiency promotes the competitiveness of a supply chain

• The role of transportation in logistics supply chain management is very important. It is the primary link that
connects all other components of the supply chain.

• The efficient and timely delivery of goods is essential for the successful operation of the supply chain.

• Transportation is responsible for getting the right product to the right place at the right time. Without
transportation, supply chains would not be able to function.
• Transportation is also responsible for transporting goods from the manufacturer to the customer. This is done by using
various modes of transport such as trucks, trains, ships, aircraft, and more.

• Each of these transport modes has its own advantages and disadvantages, and it is up to the logistics manager to decide
which mode of transport is most suitable for the product being transported.

• Transportation is also responsible for ensuring the safe and secure delivery of goods. This includes making sure that the
goods are handled properly, that the right temperature and humidity conditions are maintained, and that the goods are
kept safe from theft and damage.

• Finally, transportation is also responsible for reducing costs associated with the supply chain. This includes reducing the
time required for delivery, reducing the cost of fuel, and improving the overall efficiency of the supply chain. By
reducing costs associated with transportation, companies can make their supply chains more profitable