Topics: Logistics, Transport, Warehouse Pages: 2 (633 words) Published: February 18, 2013
How is business dependent on transport?
Transportation allows people and things to go places, whether it is across a land or across an ocean and in fact anything that allows a person or item to move. Without transportation we would be confined to living our lives in one spot. Transportation and logistics is essential to do business. All the companies need logistics as a competitive strategy. This is especially problematic for new start-ups in the internet world. The problem with smaller companies is that they have fewer options when it comes to logistics; this means these small companies have fewer resources to achieve success in the market. Logistics plays on a global stage which is crucial for the phenomenon of globalization. For too many multinational firms, the logistics department has become one of the most important departments. Planning and resource management are involved in logistics. Nowadays smaller companies new to the global business are beginning to recognize the importance of logistics. Transport system is the most important economic activity among the components of business logistics systems. Around one third to two thirds of the expenses of enterprises logistics costs are spent on transportation. Transport system makes goods and products movable and provides timely and regional efficacy to promote value-added under the least cost principle. Transport affects the results of logistics activities and, of course, it influences production and sale. In the logistics system, transportation cost could be regarded as a restriction of the objective market. Value of transportation varies with different industries. For those products with small volume, low weight and high value, transportation cost simply occupies a very small part of sale and is less regarded; for those big, heavy and low-valued products, transportation occupies a very big part of sale and affects profits more, and therefore it is more regarded. Transportation plays a connective role among...
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