Transportation and logistical chain
August 9, 2008
The classical explanation of Transportation based on moving objects from source point to reception point. That means, some physical distance between two geographical points must be overcome (by walk, by any kind of transport means).
Nowadays it is better to consider the process of transportation as one of a part in the complete logistical chain. The concept of Logistics is much wider as transportation, and beside that, it involves many other operations, which provide optimal results. During the logistical processes, logistic expert must take specific actions in order to bring the product to the customer at the right time, at a good price, in the correct quantity and in the proper condition. Transportation process represents one of these specific actions, which take place in the logistical chain.
Logistics as an activity
Logistics is a joint of planned, coordinated, regulated and controlled actions (processes, businesses, operations, measures, work) which enable the flow of physical goods, live animals, people or capital, information and knowledge from source point to reception point or customer.
The reason why these actions must be taken is to assure optimal efficiency (maximum satisfaction of customers on the market) combined with minimum costs (minimal production, financial, human resources). Various separate businesses are involved in the logistical chain. Every business must execute their tasks properly to achieve optimal results in the logistical chain.
Nowadays one specific concept is crucial for successful business. This is (Supply Chain Management) concept.
Considering this concept, it is obvious, that the elements of logistical system are all components, which are indispensable and necessary to reach high efficiency in the business process. In every day usage, these components of logistical chain are transport, internal transport, warehousing, stocks, goods manipulation, information, communication, controlling, cadre policy...
Elements of logistical system can also be classified in the logistical subsystems which are:
- Purchasing logistics
- Intra logistics
- Distributional logistics
- Sales logistics
- Disposal or ecological logistics
One of the most important facts in logistics we must take into account is that the weakness of one single part of the logistical chain represents the strength of the whole logistical process. Mostly, the weakest part of logistical chain refers to the flow of information. Information related to the business which is incorrect or behind time is usually cause for delays and higher cost of logistical services.
