Why is transportation and logistics vital for modern global business environment?

In today’s global business environment, being efficient and providing quality products and services are vital to staying competitive. Companies must eliminate inefficiencies, monitor productivity and continually improve their operational performance in order to keep pace. Logistics include all the processes required to go from raw materials to end customer delivery, including purchasing, inventory management, warehousing and shipping and even customer returns. All product-oriented businesses have logistics as a cost of doing business. It only applies to large businesses, but companies of any size can benefit from logistics improvements.

Each business has its own particular transport needs. These depend on the nature of the business and the type of products or services it buys and sells.

How to decide on what type of transport you need?

When deciding which type of transport meets your business needs, there are several factors you may want to take into account.

• What you want to transport

Consider the nature of the products you need to distribute. Are they perishable, dangerous or expensive?If you are transporting perishable goods such as food, then clearly speed is of essence.

• Frequency and timing of deliveries

Your goods or services may need to go to single or multiple destinations in Asia, Europe or across the world.

You need to decide:

1. if you will deliver daily, monthly, etc.
2. whether you want the delivery capacity to be 24-hour

• Costs

The cost of transporting goods varies depending on the type of transport you use. Transporting goods by plane or courier tend to be the most expensive methods per unit, but can be the fastest. Using trains, ships or the post can be more cost-effective, but not always practical, especially if the goods are perishable. E-mail is another cost-effective delivery method but is limited to electronic files and data.

What are the ways of acquiring vehiles for transportation?

There are three main ways of acquiring the use of vehicles. You can:

• buy your own vehicles outright

• hire purchase or lease them

• use a courier or distributor to move your goods

What are the ways in using carriers to trasport your goods?

• Couriers specialise in the speedy and secure delivery of small goods and packages. They deliver nationally and internationally. They only deliver goods up to a certain weight.

• Freight forwarders specialise in “consolidation”. This means they combine your goods with other consignments in a single container or vehicle, reducing the costs. They generally offer related services, eg., organising the paperwork for exports.

• Logistics providers manage the entire transportation process, tracking goods and organising any documentation needed. They can also provide warehousing and local distribution centres, if necessary.

How to select the best carrier?

When choosing a carrier, you need to consider:

• their experience handling similar products to yours

• their experience in the modes of transport you wish to use

• cost and extra charges

• delivery schedules

• their location

• whether they offer national and international coverage

• whether they provide insurance

• membership of trade associations and professional bodies

• word of mouth recommendations

What is the need to check licences and insurance?

You need to check the licences of all your drivers. You may need to consult an independent financial adviser or insurance company about which types of insurance best meet your business needs.

What are the sections focused by transport and logistics security?

They focus on the various transport and specific security needs of aviation, maritime and mass transit organisations including railways, buses, metros, ports, ships and also the supply chain and logistics industry.

What are the various safety and security components involved in transport and logistics industry?

Components concerned include access control, biometric, smart card management, CCTV, remote surveillance and monitoring, screening and detection, IT security, security services, fire and safety, perimeter protection, terrorism protection and many other technologies for the transport and logistics security market.

What are the basic packing tips?

Keep the following supplies and accessories on hand:

• Boxes, all sizes

• Bubble wrap or other cushioning material

• Marking pens

• Tape measure

• Furniture pads

• Packing tape and scissors

• Money and credit cards

• Number the boxes and keep a list of what is in each box.

• Clearly mark fragile items.

How does efficient transportation and logistics system help business?

Any improvement in logistics you make results in savings in your cost of doing business. Best of all, these savings drop right to your bottom line as profits.

Some examples of how logistics can help your company includes:

• Cost savings

• Reduced inventory

• Improved efficiency

• Improved delivery time, which improves customer satisfaction and can be a competitive advantage if your competitors can’t deliver as quickly

What are the qualities of a good transporter?

• Punctuality

• Short transit time

• Teamwork

• Adequate storage facilities

• Efficient customs clearance

• Good network

• Cost-effectiveness

Vinod Kuriakose

(The writer Vinod Kuriakose can be contacted at feedback2vinod@yahoo.co.uk)