Importance of Transportation Services in Logistics

 

Every aspect of our lives has been significantly impacted by transportation. It is a medium through which every human activity is possible. Right from traveling and shifting to carrying goods from one place to another, transportation has made things feasible. 

Moreover, transportation has also helped exponentially in the enterprises' growth. Transportation Services in India have contributed a lot to the country’s progress and upliftment. Let’s check out some beneficial aspects of transportation to understand this better. 

Transportation is the most powerful system in business logistics and vice versa. 

Approximately, one-third to two-thirds of the organizational logistics cost is spent on transportation. It is the main factor for the logistical process to materialize. A lot of planning goes into the logistical protocol before transportation takes place. 

So, it would be incorrect if transportation is considered as the only important factor. For instance, if there is no execution from the logistics side, the transportation won’t happen appropriately, likewise, if the transportation is not apt, then the logistical planning goes in vain. 

This way, one complements the other. It is an interconnected process. 

This is how transportation proves to be important: 

Time optimization: Before the logistics plan comes to the step of execution, certain things are to be considered highly crucial. 

a) Checking the dates and receipts of the raw materials to be transported.

b) The management of inventory

c) Convenient and time-saving route for less costing and faster delivery

d) Analysing the risks during transportation.

 

With these things planned accurately, transportation can be highly beneficial and efficient. Planning gives more agility. 

Cost-effective: Along with the planning and execution, the right choice of transportation can reduce the financial burden of the business. For example, transporting perishable goods through airways if the delivery is supposed to be done in distant places saves a lot of money as the perishable goods reach on time. This builds trust between the end-user and the business. Cargo transportation services, trucks, etc. all decide how cost-effective each type of transport is. Based on that, the logistics department chooses suitable transport for their goods, considering the quantity, the deadline, and cost. 

Efficiency in the service: The delivery of goods at the right places at right time builds a bridge between the production department and the consumer. This highlights the efficacy of the business. 

Transportation and Warehousing also fills the gap between inter-organizational units. So, the geographical boundaries get stricken off due to this reason. Transportation affects the wider business decisions of an organization. It is also important for the establishment of partnerships with suppliers.  

Strategic planning and correct use of transportation can surely uplift a company’s image. Bigger-sized companies need a vast range of products or goods that need distant distribution, sometimes during urgencies and spontaneous situations, transportation plays an important role to rely on. In a developing country like India, transportation has helped increase the employment ratio too. 

All in all, transportation is an asset to the world’s economy and has helped the logistics department to prosper.