Why is Transportation Management Important?

Transportation is one of the most important elements in organizing business processes. Delivering raw materials, picking up the goods to the warehouse, and then bringing them to the client and doing all this with minimal financial and time costs is the main task of transport logistics for business.

What is transport logistics?

Transport logistics is a system for organizing delivery, namely for moving any material objects, substances, etc. from one point to another along the optimal route. One of the fundamental directions of the science of managing information and material flows in the process of goods movement.

In other words, transport logistics is a part of logistics science focused on the management of transportation, supply and delivery of goods and components. It is considered both the delivery of the product to customers by personal vehicles, and cooperation with a large logistics company that carries out transportation around the world.

Why is it necessary to competently approach the organization of this process? Transport costs account for about 50% of all logistics costs. That is why it is very important to optimize this direction to increase delivery speed and reduce transportation costs. Contact the React Native development agency to cut costs and streamline business processes.

The main goal of transport logistics

The goal is to transport any cargo from point A to point B with the best value for money. It is necessary to choose the most suitable modes of transport, routes, speed of transportation, and also to minimize damage to the cargo. Sometimes it is better to choose the more expensive and longer option to avoid damage to the goods.

Transport logistics functions:

• Planning and organization of cargo delivery

• Registration of necessary documents and legal support of transportation

• Loading and unloading of goods

• Information support

• Optimization of the process in order to improve the quality of transportation and minimize costs

Additional services such as customs or insurance may be included if required

Transport logistics tasks

Based on the purpose and functions, it is possible to determine the main tasks that this section of logistics solves:

• Analysis of delivery points, cargo properties and construction of a preliminary route

• Choosing a suitable mode of transport

• Choosing a carrier and logistics partners

• Building a route with all key points

• Control of cargo during transportation

• Optimization of transportation indicators

Analysis of delivery points and cargo properties

At the first stage, a preliminary route is determined along which the transportation will take place. This considers the geography of the area. Also, it is immediately necessary to consider the properties of the cargo, its weight, volume, storage and transportation conditions. Already at this stage it becomes clear whether you will have to use several types of transport, specialized equipment or intermediate storage of cargo.

Choice of transport

The type of transport depends on the type of terrain, route, conditions and frequency of transport. In logistics, transport is divided by the medium of movement:

• Land transport: cars and railways, as well as a pipeline (despite the fact that this is not transported in the general sense, it is a means of transporting cargo)

• Water transport: sea and river vessels

• Air Transport

The choice of the required type of transport is carried out based on the conditions of transportation (terms, storage conditions) and the properties of the cargo.