assignment on how companies can decrease transportation and logistics costs

Compose a 1500 words assignment on how companies can decrease transportation and logistics costs. Needs to be plagiarism free! Logistics is a term that got recognized in the 1950s. The trend of nationalism and globalization has been one of the most essential triggering factors to its initiation. In terms of the industrial organizations, its main purpose is to optimize the existing production and distribution processes using the same resources based on such management techniques that promote maximum efficiency and gives a higher competitive edge.

The key element in the logistics chain can be said to be the transportation system. Transportation is a function that joins separated activities and occupies one-third of the logistic costs. That’s why the impact of it on the logistics system is considered to be huge. From the collection of the raw materials and the manufacturing of the final product, to the distribution and achievement of final returns. transportation plays a vital role throughout. The achievement of maximum benefits can only be fulfilled by the streamlined flow and a good coordination between all the functions being performed in the organization.

Previously we have stressed enough on the importance of the role of transportation factor on the logistic costs. Pertinent now is the utilization and implementation of such logistical activities that contributes to the effective supply chain management. Transportation is one area which has a tendency to add to the unnecessary supply chain costs. For instance the cost of the transport operation can be escalated by inefficient load planning which might also have an impact on the customer service levels. Ineffective scheduling or routing of the products can also impact the transportation costs. Similarly, ineffective and inefficient transport and even the wasteful ware house management, in relation to the production process can be detrimental to the supply chain processes. In view of all that is mentioned above, we can redefine the work of transportation component of the logistics from meeting low cost and high efficiency to meeting elevated service requirements and increasingly lower costs to provide a strategic edge.

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