An area of world business that is rarely thought about but which keeps the world economy going is logistics and transportation. These two areas go hand in hand. You can’t have effective transportation without good logistics.
Transportation and logistics help bring in goods and materials and get them to their final destination. The Job of the transportation professional is to get the goods to their destination using any means necessary which are animal, air, road, train, boat or any combination of methods. But the transportation business is usually only worried about getting the product, service, information, or goods to their final destination.
There is another area that needs to be taken care of too, that of managing the information, packaging, coordinating, locating the product, and finding the best method of transportation. This administration is called logistics. Logistics is concerned with getting the product to its destination the fastest way possible without affecting the quality or service of the product.
Transportation Companies and Their Logistics
Today, in most cases logistics is simple, because we have computer networks set in place, and because we have all types of transportation that works well. For many years transportation and logistics were done separately, but now many transportation companies are integrating logistics into their companies. This makes it easier for customers to trust in the transportation companies.
As a business you can use the transportations logistics as your own. In other words when you choose national trucking companies, or transportation specialists like Fedex, DHL or UPS, they can help you with the logistics of your products too. This means less work for you and you only need to use their website to track your shipments. But this does not work in all situations.
Your Own Logistics Department
As a business you may want to put your own logistics methods in place. You want to do this, when you use different transportation methods and when you transport large items, and large quantities. If you transport equipment, trailer boxes full of product, or transport some items by rail, others by barge, and others by truck then you want to have your own logistics plan in place. This way your employees can track where a product is and when it is expected to arrive at its final destination. If you run a large company and transport large quantities then this may be what you want to do.