Transportation in Logistics - Logistics Essay Example
The transport industry plays a very crucial in any economy and is ever dynamic - Transportation in Logistics introduction. Thus, irrespective of whether it is people or commodities being transported either through land, water or air, it is imperative the transportation modes be designed effectively. This paper therefore examines the concept of logistics in transportation.
With rapid development in economy across the globe, multinational organizations are faced with various cultural dilemmas which they are unable to solve readily using their supply chains (Bowersox et al, 2005). In other words, organizations are faced with the challenge of undertaking operations in the correct ways in order to be successful in their various engagements. For instance, organizations are faced with the hurdle of selecting reliable suppliers. This challenge has been attributed to the fact that many multinational organizations have entered the world market and have expanded their supply chain networks. As a result, the supply chains have become more complicated (Chandra & Kumar, 2000).
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Transportation in Logistics
The modern day business is characterized by increased complications and the need to take care of the environment. At the same time there have been increased security risks (Douglas et al 2009, pp 5-23). Customers are also increasingly demanding that organizations be flexible and better performance from the organizations. These increased demands have therefore necessitated the need to have a reliable logistics and transportation systems. This has implications that transport and logistics cuts across all the functions of a business organization and actually constitutes close 10% of the entire economic activities (Bowersox et al, 2005).
Disturbances in the global economy and the increased volatility of the world fuel prices are fuelling the desire to have more streamlined operations, more innovation in service provisions as well as innovative production models. Therefore, organizations which seek to undertake continued improvements in their processes as a source of competitive advantages must have the capacity of managing the desired changes (Bowersox et al, 2005). This implies that transportation and logistics are very vital to the stability and future growth of an economy. Therefore countries need to increase their expenditure on transportation businesses which could go a long way in connecting the countries with the main markets.
The rationale in this case is that expanding the transportation businesses, countries will be able to effectively distribute raw materials and commodities and increase their volumes of exportation. Thus, through transportation and logistics, countries will be seeking to optimize transport and the way commodities are flowing (Bowersox et al, 2005). The logistics structure of organizations entails the way information and commodities are flowing between organizations and those who supply them or between the organizations and their consumers. Therefore, how effective such systems are should be very important to many companies especially against the backdrop of increased outsourcing and the effects of globalization.
Transportation logistics is therefore interested in the way specific activities within transportation and big transport systems are planned and optimized. It means that transportation companies basically seek to manage their transport and logistics systems in an effective way as to meet the needs of the consumers. Similarly, effective transport and logistics management can go along way in ensuring that the organizations make their deliveries at the least possible cost. The world economy is increasingly connected through suppliers, systems of logistics, production capacities and the consumers. This interconnection requires an effective supply chain management (Monczka & Trent, 2002). As such, using formation technology, organization in the transportation business can keep abreast with the changing global business trends (Bowersox & Closs, 2000, pp. 364-373). Eventually, information technology can equip the firms with unique competitive advantages.
Bowersox, D. J., Closs, D. J., & Cooper, M.B. (2005). Supply Chain
Logistics Management, 2nd Edition, Chapter 8. McGraw-Hill. Irwin.
Bowersox, D. J., & Closs, D. J. (2000). “Logistics” Chapter in the Handbook
of Information Technology in Business. Milan Zenely Ed. London. Thomson Learning. pp. 364-373.
Chandra, C., & Kumar, S. (2000). “Supply Chain Management in Theory and
Practice: a Passing Fad or a Fundamental Change”. Industrial Management & Data Systems University of Michigan, Dearborn, Michigan
Douglas, V. M., Whipple, J., & Closs, D. (2009). “The Role of Strategic
Security: Internal and External Security Measures with Security Performance Implications.” Transportation Journal 48:2 pp 5-23.
Monczka & Trent. (2002). Purchasing and Supply Chain Management, 2nd
Edition. Thomson Learning. Mason OH.