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International Transportation and Logistics


Introduction

Transportation term defines the movement of products such as hot rolled steel coil from one place to another. It makes the way from the beginning of supply chain to the customer. Products are rarely produced and consumed in the same location, so transportation plays an important supply chain driver. While logistics refers to the flow of resources between the point of origin and the point of consumption to meet the requirements.The resources in logistics include physical items, such as materials, liquids and staff as well as abstract items and particles.

Key drivers in transportation

Shipper: Shipper refers to the party who wants to transport the product from one place to another.

Carrier: Carrier refers the company that moves the goods from one place to another place.

Modes of transportation

Package Carrier

  • Package carriers are transportation companies which carry small packages like DHL, UPS.
  • Package carrier is suited for e-business.
  • Package carriers use air, truck and rail for transportation of goods.

Rail: Rail transport is well suited for bulk shipment of products like cement, coal and food grains from the production plant to the warehouses.

Water: Water transport is very effective for significantly large quantities of goods and it is the cheapest mode of carrying such types of load.

Relationship between Transportation and Logistics

Transport Costs and Goods Characters in Logistics

  • Transport system makes products and goods movable under the least cost principle. While in logistic system, cost could be regarded as a restriction of the objective market.
  • Transport affects the results of logistics activities and also influences production and sale.

Effects of Transportation on Logistics

  • It refers the planning of all these functions and sub-functions into a system of goods movement for minimizing the cost and maximize services to the customers