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The Engine of Logistics: How Transportation Makes Logistics Move - Management Enthusiast
Sunday, November 10, 2024
Sunday, November 10, 2024
HomeProcurement/Supply Chain ManagementThe Engine of Logistics: How Transportation Makes Logistics Move

The Engine of Logistics: How Transportation Makes Logistics Move

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Have you ever wondered about a product’s journey before it arrives at your doorstep? The answer is logistics. It is a complex web that ensures goods get to the final user from the source. But one thing truly pushes this very intricate element which is transportation.

Transportation is an important element of logistics, as the backbone to facilitate the movement of goods from point of origin to destination. Efficient transportation systems are indispensable for businesses to deliver products on time and satisfy customer demands. This blog explores the various types of transportation and recent advancements that bring out their practical applications.

The logistics industry utilizes a diverse range of transportation modes, each with its advantages and limitations:

Road Transportation (Trucks)

Utilizes vehicles such as trucks, vans, and cars on road networks. It offers flexibility, door-to-door services, and direct delivery capabilities. However, it’s susceptible to traffic congestion and fuel costs. Aramex’s vast network of delivery trucks ensures timely last-mile delivery for its e-commerce operations.

Maritime Transportation (Ships)

Uses ships and sea routes for international goods transportation. Ideal for high-volume, bulk cargo over long distances, especially for international trade. Maritime Transportation offers the most cost-effective option for large quantities but can be slower than other modes and susceptible to port congestion. Maersk Line facilitates global trade by transporting goods between continents efficiently.

Air Transportation (Planes)

Fastest option for urgent or time-sensitive deliveries, precious for high-value goods. However, it’s the most expensive mode and has limitations on weight and size. FedEx and UPS use air freight to guarantee overnight delivery services worldwide.

Rail Transportation (Trains)

Efficient for bulk and containerized cargo over long distances, particularly within continents. Energy-efficient and cost-effective than air freight, but slower than trucks. Indian railways and Concor transport large volumes of agricultural products, coal, and chemicals across India

Pipeline Transportation (Pipelines)

Pipelines transport liquids and gases through pipelines. It provides continuous flow, reliability, and low operational costs post-installation. However, some drawbacks such as High initial cost, limited to specific goods, and potential leak risks are associated with pipeline transportation. One of the World’s largest LPG pipelines, the 1,269 Km Jamnagar – Loni Pipeline of Gas Authority of India Limited and One of Asia’s largest pipeline networks, the 1800 km HBJ Gas Pipeline and its subsequent 505 km. Gas Rehabilitation and Expansion Projects for GAIL, India are some of the successful gas pipeline projects.

Multimodal Transportation

Combining two or more modes to leverage the strengths of each. For example, a shipment might travel by truck to a port, then by ship across the ocean, and finally by truck again for final delivery. The document issued for the entire journey is Multimodal transport document or multimodal transport receipt.

The logistics landscape is constantly evolving, and transportation is at the forefront of innovation. Exciting advancements are changing the game, some of them are mentioned below:

Autonomous Vehicles: Self-driving trucks and delivery vehicles. Companies like Waymo and Tesla are advancing autonomous truck technology to reduce labor costs and enhance safety. Waymo Via is testing autonomous freight services with partners like UPS.

Drones: Unmanned aerial vehicles for delivery. Enhanced technology for last-mile delivery in inaccessible areas. Amazon Prime Air and Ecom Express are testing drone deliveries to reduce delivery times and serve customers.

Transportation is the engine that keeps the wheels of logistics moving. Various forms and ongoing advances, including optimization strategies, lead to a smooth flow of goods through companies, increasing happy customers and making the supply chain more resilient. In this regard, whenever you receive a package, take a minute to appreciate the complex transportation network that made it possible.

Also read: Packaging & Labeling for Smart and Secure Logistics

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Shantanu Trivedi
Shantanu Trivedi
Shantanu Trivedi is working as a faculty at the University of Petroleum and Energy Studies, Dehradun. He holds an MBA and a Ph.D. degree in Supply chain management. He has more than a decade of experience in teaching and research. He has published 2 books, 5 book chapters and more than 12 research papers and articles in international journals of repute. His research interest includes Supply chain management, agribusiness, online and distance education, Business sustainability and infrastructure management. He is the reviewer of many international publishing houses. He has presented his work and won awards at many research conferences and symposiums. He has worked on many research with state governments and the government of India. In his spare time, Shantanu loves to travel and explore nature.
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