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The Role of Transportation on Logistics A process of transporting and handling materials and goods is referred to as logistics, coming from a point of origin and ending at the point of the customer’s possession, which entails in between these points – the movement of the materials and goods from the suppliers, followed by the movement of the materials and goods from supplier to a company and from the company to the hands of the customers, but within these movements are other components that play a role in logistics Logistics is made up of three important components that are related and interlinked with one another and they are: logistics services, information systems and infrastructure. Logistics services refer to the movement of goods from the point of origin through production until the goods reach the customers and which covers storage, inventory control, transport, as well as the selection of contractors and freight negotiations. Information systems refer to the flow and processing of logistics information for decision making and management in order to furnish essential data for the logistics services to proceed and complete its main function and objective. Infrastructure covers human resources, financial resources, packaging materials, warehouses, transport and communication. A well-developed transportation system results in efficiency, reduce operation cost and promote service quality, without having a well-planned and well-designed transportation system, logistics will not be able to meet its full advantage. There is much greater investment of logistics’ expenses into transportation in order to succeed in its logistics operation which in turn influences production and sale. For goods or products that are of small volume, low weight but of high value, the transportation cost takes up a minimal part in the sale’s cost, but for heavy and low-valued goods or products, the transportation cost uses a great part of sales and affects profits. For as long as there is quality management in the transportation system, due to the fact that the system is a complex operation, goods can be transported to the right place at the right time, which, in effect, brings out service quality and efficiency.
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Land logistics is an extension service delivery of good or products from air and maritime transports and uses road freight transport system, railway transport system, and pipeline system. The railway transport has the following advantages: great carrying capacity, low energy consumption, not affected by weather conditions, but has the advantages, such as high cost of facilities and maintenance, not flexible in terms of urgent schedules, and time consuming in arrangement of railway carriages; on the other hand, the road freight transport system has these advantages: cheaper investment, accessibility, mobility, and availability are high, but the disadvantages are low capacity for delivery, low safety of goods and slow speed. High capacity, not affected by weather conditions, cheap operational fee, and continuous transport are the benefits that can be derived using the pipeline system, but it is an expensive infrastructure, hard to supervise, regular maintenance needs.What You Should Know About Services This Year