Various Methods of Transportation in the Supply Chain

Topics: Transport, Transportation, Petroleum Pages: 5 (1593 words) Published: October 19, 2013
Various Methods of Transportation in the Supply Chain

Transportation is defined as the movement of people, materials or products from one location to another. “Transport is important since it enables trade between people, which in turn establishes civilizations.” Logistics is referred to as both the freight and inventory management (i.e. planning, execution and control) as well as the warehousing of materials and products (i.e. food, equipment, liquids and staff, including abstract items like information flowing to reports and documentation relating to goods, particles, and energy) through both internal and external distribution networks. This includes the act of packaging products for both storage and shipment. Transportation is one of the most important factors in our lives. It reduces time by allowing people or products to travel from one location to another with speed. “The history of transportation goes back to the pre-historic ages and their method of transportation mostly consisted of walking and swimming. Gradually man learned to use animals to carry himself as well as his belongings. Use of animals as means of transportation was revolutionized by the invention of the wheel. The wheel can be given the credit for changing the whole concept of traveling and transportation.” Land and road transportation dates back to pre-historic ages and after the invention of wheels this road transport revolutionized in a big way.

Water transport also had a large impact on growing civilizations. Cities were established along the banks of rivers and shores of oceans in order to make sure that the civilization never ran out of both food and water. There are reports of boat and ship usage as old as 30 BC and technology has improved this method greatly.

About 500 years ago the rail was utilized for transport. Initially, it consisted of man or horse power and sometimes also of rails made of wood. In the 1800’s the modern railway was developed.

In 1903 the Wright brothers invented the airplane. This proved to be one of the most revolutionizing inventions in the history of mankind. Airplane technology has changed considerably over the years, which is why they are now known as the fastest method of transportation and travel.

Transportation is one of the first processes that man started. There really is no definable history of transportation timelines so it can’t be dated back to an exact time period. What we do know is that the process of transportation is as old as man himself and will remain while people remain on the earth.

In the United States the Logistics and transportation industry is one of the most competitive industries in existence. "Spending in the U.S. logistics and transportation industry totaled nearly $1.3 trillion in 2011, and averaged 8.5 percent of annual gross domestic product (GDP). Analysts expect industry investment to correlate with growth in the U.S. economy." Supply chain networks in the United States link many producers and consumers through various transportation modes.

Transportation does have a huge effect on the economy and direct impact on the development and the welfare of all populations. When transportation systems are efficient there is easier access to markets, more employment opportunities and good financial turnaround. When these systems are deficient in terms of capacity or reliability, they can have a negative impact by increasing the economic cost.

Some of the crucial elements of effective logistic management include movement of product, movement of information, time or service, cost and integration. Movement of product is generally what people think of when they think of logistics. There is a lot involved here, product moves should complement the overall corporate strategy. When we want to lower cost or improve inventories our actions must align with these goals. In order to have efficient supply products must flow, plans must be flexible. If there isn’t a...
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