Generally things are not consumed where
they are produced; this fact necessitates transporting products from the place
of production to the place of consumption.
Transportation functions as a primary factor in keeping the supply
chain effective. Movements of goods,
products or even the service personnel constitute the very foundation of any
business enterprise. Movement can be any mode of transport, land, air and seas,
depending on the contingency of business commitment.
With ‘Green’ having captured the universal concerns in a right way,
any business would do well to see to it that it makes its customers understand
that they are very much attentive to reduce emissions as much as possible by
choosing such modes to transport, rather such transport companies that have
made a point to reduce emissions in their transport. Customers generally
appreciate the manifestations of social responsibility in business transactions.
Health, personal and social, cannot be
Many international companies with sprawling business interests have
found it important that they should have a system that monitors the movements
of the products effectively through efficient transport. You must know where
your products are now at present moving to which places. This keen monitoring
of the movements of the products, of the vehicles that carry the products goes
a long way in preventing serious lapses; the most serious one is the customer not
getting his product at the right time in his place in the right shape.
Transportation management has many benefits to offer. First of all, it sees to it that the supply
chain is not disrupted. Any disruption
to the supply chain will have often far reaching negative consequences such as
delayed delivery of the product to the customer leading sometimes to the exit
of the customer from the business ambit. No greater damage to the business
enterprise can be done than by an exit of a customer. Retention of a customer must not be lost
sight of by any business management personnel. Acquisition of a new customer is
more demanding and a great complex challenge.
There is another advantage; efficient planning of the movements of
goods including raw materials both from and to, and other ancillary movements
of requirements helps keep the inventory low. Indeed, it demands careful
planning of all the marketing people with necessary interactions with the
supply chain. No doubt, low but unfailing inventory costs less to the company
which is very important.
Ultimately, the guiding principle is customer satisfaction.
Understanding customer is very fundamental necessity to satisfy him and
understanding customer requires constant interaction with them in any possible
Having seen the importance of transportation in the supply chain
management, we shall move on to the next driver in our next session: