Role of transport in logistics management

Product movement: The primary function of transportation is the forward and backward movement of the product in the value chain. It is necessary that product be moved only when they are necessary and there is an enhancement in the product value. This is because
transportation utilizes the financial resources for expenditure like driver‘s labor operation cost of the vehicle, and other administrative expenditure. The environmental resources are utilized both directly and indirectly. An example of direct usage can be the fuel and oil costs and an indirect usage can be the environmental expense caused by air, noise pollution in the environment.

Product Storage: Temporary storage for in – transit goods is expensive. But in circumstances where the warehouse space is limited, utilizing the transportation vehicles may be a better option. One option is where the product is loaded on the vehicle and then it takes a roundabout or indirect route to its destination. The vehicle can be used as a temporary storage option where the origin or destination warehouse has limited storage capacity. Another option is to take a diversion. This is done when there is an alteration in the shipment
destination while the delivery is in transit. While, telephone was used for diversion strategies originally, today satellite communication handles this task efficiently.

Makes available raw materials to manufacturers or producers: Transport makes it possible to carry raw materials from places where they are available, to places where they can be processed and assembled into finished goods.

Makes available goods to customers: Transport makes possible movement of goods from one place to another with great ease and speed. Thus, consumers spread in different parts of the country have the benefit of consuming goods produced at distant places.

Helps in labour mobility: Transport helps a lot in providing mobility to workers. Where people from foreign countries work in different industries in the country. Similarly, it is not always possible to have workers near the factory. Most industries have their own transport system to bring the workers from where they reside to the place of work.

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