Transportation and logistics

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Research Paper

Topic: Transportation and logistics

Prepared by: Zhalilova Nurgul

Eliza Mamadiyarova

Group: WEC13-B

Outline

Abstract

Introduction

1. What is transport logistics?

2. The transport logistic is closely related to ware-house logistic about that speech went in one of previous reasons

3. What tasks are decided by transport logistic - 5 basic tasks?

4. As correct to choose a transport company on transportation of load

5. Prospects of logistics

Conclusion

Abstract

logistics transport delivery management

The operation of transportation determines the efficiency of moving products. The progress in techniques and management principles improves the moving load, delivery speed, service quality, operation costs, the usage of facilities and energy saving. Transportation takes a crucial part in the manipulation of logistic. Reviewing the current condition, a strong system needs a clear frame of logistics and a proper transport implements and techniques to link the producing procedures. The objective of the paper is to define the role of transportation in logistics for the reference of further improvement. The research was undertaken to assist logistics managers, researchers and transportation planners to define and comprehend the basic views of logistics and its various applications and the relationships between logistics and transportation.

Introduction

Since logistics advanced from 1950s, there were numerous researches focused on this area in different applications. Due to the trend of nationalization and globalization in recent decades, the importance of logistics management has been growing in various areas. For industries, logistics helps to optimize the existing production and distribution processes based on the same resources through management techniques for promoting the efficiency and competitiveness of enterprises. The key element in a logistics chain is transportation system, which joints the separated activities. Transportation occupies one-third of the amount in the logistics costs and transportation systems influence the performance of logistics system hugely. Transporting is required in the whole production procedures, from manufacturing to delivery to the final consumers and returns. Only a good coordination between each component would bring the benefits to a maximum. The purpose of this paper is to re-clarify and redefine the position relationship between transportation and logistics systems through collecting and analyzing various application Proceedings of the Eastern Asia Society for Transportation Studies, Vol. 5, pp. 1657 - 1672, 2005 1657 cases and practices in logistics from literatures. It is to provide a general framework and expect to be referred for further development and researches. The paper started from introducing the development of logistics and transport-related sectors based on a historical review. Afterwards it discussed the interrelationships of transportation and logistics. It expresses the benefits that transportation brings to logistics activities and vice versa. For instance the increase of the efficiency of logistics also would bestead to release traffic load in the urban areas. Furthermore, some major logistics activities and concepts were also discussed in this paper. It especially presents City Logistics independently due to it is considered as a main tendency and an available method of future integration of transport and logistics in the urban areas. Finally, this paper will discuss and conclude the potential further development of logistics systems.

1. What is transport logistics?

The transport logistic is the system on organization of delivery of load with minimum temporal expenses and optimization of charges on delivery. The transport logistic is internal and external. The first provides productive transportations inwardly, and second is a supply of enterprises and prepared production distribution.

Example: A businessman organized a small productive company on making of wares from a plastic. On the primary stage, selling products in one city was succeeded at the use of one official machine.

However with the increase of production and appearance of partners there was a necessity to bring over the greater amount of cars to the use in other cities. Herein he was very helped by a transport logistic company.

The primary purpose of logistic consists in the maximal use of potential of carrying capacity of rolling stock and organization of regular deliveries without storages.

2. The transport logistic is closely related to ware-house logistic about that speech went in one of previous reasons.

The freight logistic implies realization of a few different stages:

.Selection of the most suitable transport vehicle;

.Count of necessary charges

.Preparation of documentation

.Loading of the transported load

.Process of transporting

.Unloading on an eventual point

In case of necessity deliveries of products for a border the transport logistic must additionally take into account custom services.

A customs clearance is thus conducted. Registration of load in this case comes true on the special principle.

3. What tasks are decided by transport logistic - 5 basic tasks?

Task 1. Analysis of eventual points

On this stage the gasket of preliminary route is produced depending on distance between points. The features of the chosen segment of way are thus taken into account, what the choice of the most suitable transport vehicle is produced on the basis of.

There can be a necessity to resort to the use of different type of transport on separate areas in certain situations.

Task 2. Analysis of properties of load

After the detailed analysis of technical and operating descriptions of the transported load the choice of suitable transport is produced, and also a comfortable route is created.

Subject to condition, if transportation of hazardous substances is executed, then such route must be laid far from the densely populated points and strategically important objects. Additionally at implementation of such voyage the special permission can be required.

Task 3. Choice of suitable transport

Essence of transport logistic consists in providing of timely delivery of load. Without the choice of the most suitable transport to settle such task does not get to possible.

Transportation can be executed by the different types of transport vehicles.

Task 4. Construction of optimal route

The logistic of transport systems plugs in itself the construction of optimal route of delivery of load on that transporting will be executed in the compressed terms. The necessary speed of delivery, specified with a customer on the preliminary stage of collaboration, is necessarily taken into account thus.

Also the specific of the transported load and geographical location of all waypoints undertake into account.

Before the achievement of positive result a few different variants of way of delivery can be created. An optimal variant that includes the minimum indexes of time and charges a stay after the screening-out of little perspective routes.

Depending on climatic and other external factors on motion work some adjustments can be brought in a route.

Task 5. Control of load at transporting

For implementation of the set temporal scopes it is necessary carefully to watch the movement of load and if necessary to bring in some corrections in a route.

Breakage of transport, delay during realization of unloading stevedorages is all can result in violation of delivery dates. Watching after the movement of transport is possible at the use of modern navigation devices.

4. As correct to choose a transport company on transportation of load

Understanding with what transport logistic, it is possible to pass to permission of concrete tasks - choice of company that will be able to provide rapid and quality transportation of loads.

Experience of company. Age of company engaging in transporting of loads is the index of her stability and testifies to debugged of mechanism of work.

Technologies of work. With large practical experience already had time a company to put right certain technologies allowing to labor for a positive result. The close co-operating with contractors on the different stages of delivery allows to settle any nascent questions.

Personnel of company. All staff men must be one unit and to have sufficient practical experience. It is the mortgage of professionalism of any firm.

Specialization of logistic firm. Small logistic companies in majority cases appear only mediators. The tested firms that is specialized on deliveries of collapsible loads cannot be little on determination. Such service provider can be noteworthy.

Features of transportation of products that is produced by your company.

5. Prospects of logistics

Facing the worldwide competition, the improvement of logistics system should be advanced by both private companies and government. Weeld and Roszemeijer (Ho, 1997) discerned three revolutions in business that have substantial impacts on the purchasing and supply strategies of the manufacturing sectors. These three revolutions are: (1) the globalisation of trade; (2) the coming of the information era; (3) more demanding consumers and continuously changing consumer preferences. The main characteristics of future logistics development are:

* Government role: To keep competitiveness of industries, the government has to lead the way to assist the logistics industries. For instance, the idea of freight village of city logistics provides the environment to promote logistics efficiency and to reduce operation costs. However it involves large of investments and some problems relating laws and national policies. Without the lead and support of government, achieving the plan is difficult.

* Growth of international goods transport: The up-growth of international freight transport is contributed by several factors. Firstly, the blossoming of E-commerce pushes ahead the international business activities. Secondly, the change of production strategy needs international cooperation, e.g. importing the semi-finished products from countries with Proceedings of the Eastern Asia Society for Transportation Studies, Vol. 5, pp. 1657 - 1672, 2005 1669 cheaper human resources to those with higher technology to assemble the final goods. Thirdly, the pressure of globalised market, such as World Trade Organization (WTO), pushes local industries to promote themselves to reach an international standard and face the worldwide competition.

* Improvement of services: Providing a good customer service becomes a necessary requirement of business operation with the intense competition of global market. The quality of services is the main factor to affect consuming behaviour among the enterprises with high similarity. The service systems involve several developed techniques now, such as Efficient Consumer Response (ECR) and Quick Response (QR). In the near future, more new techniques would be applied in providing better services for customers.

* Revolution of logistics operation: IT techniques and its products bring efficiency and fluency to the logistics systems. Radio Frequency ID (RFID) is one of these techniques. The main difference between the bar-code system and RFID is that RFID does not need the action of scanning the barcode on goods. RFID could save manual operation time dramatically. RFID systems could sense the amount of goods input in the tags automatically and immediately when the costumers push their trolley through the exit (Carroll, 2004).

* Shorter product life cycle: With the current trend, the merchandise design is changing day by day, and therefore, the product life cycle is shorter and shorter, especially in computer science. To confront the impacts, logistics system must improve its efficiency and reliability of goods delivery. Otherwise an inappropriate logistics system would hinder the competitiveness of new products and the business profits.

* Improvement of logistics facilities: The advancement and development of logistics are based on several techniques and complete theories. High-tech facilities and systems, e.g. ITS, could bring more possibilities and advantages to logistics. For example, the improvement of related facilities, e.g. Forklift Trucks, is necessary for transport efficiency. In the future, factory automation is the main target for the whole supply-chain procedures. It could help to improve efficiency and also reduce the operation costs.

* Channel cooperation between companies: In order to save the logistics costs, a key concept is to maximize the usage of available transport capacity. Integrating the logistics demands between numerous departments helps achieve this purpose. In practice, a conglomerate could develop its own logistics service for the branches. For some medium size companies, they could cooperate transport channels with others.

* Specialized logistics delivery: One of the notable trends of logistics industries is specialized delivery service. For instance, delivering fresh food from the place of origin needs low-temperature containers. Compute chips, gases and petroleum need particular conveyances to carry. These demands are rising since the products became more and more delicate.

* Logistics centres: The development of logistics centres is good for industry promotion and the development of national economic system. Logistics centres could successfully shorten the distance between production and marketing vertically and also integrate various industries horizontally, and thus decrease the costs. Governments can propose special areas for storehouses and logistics to reduce land acquisition. The future logistics will cooperate e-commerce, the Internet and the newly door-to-door service to create new business prospects.

* Freight transport: The alliance between middle-small size delivery companies is an important trend in the future. The strategy could help to expand service areas and increase service quality, and meanwhile raise the loads of single trips to reduce delivery costs.

Conclusions

This paper covers broadly from logistics activities to transportation systems and attempts to determine the role of transportation in logistics systems through extensive review. The main contents of the research include a review of logistics development, the characters of various transport operations in logistics activities, the applications of logistics in various fields, city logistics, future direction in logistics development, and its cooperation with transport systems. To sum up, logistics and transportation have some relevance.

(1) Logistics system has a more and more important position in our society activities.

(2) Transportation and logistics systems have interdependent relationships that logistics management needs transportation to perform its activities and meanwhile, a successful logistics system could help to improve traffic environment and transportation development.

(3) Since transportation contributes the highest cost among the related elements in logistics systems, the improvement of transport efficiency could change the overall performance of a logistics system.

(4) Transportation plays an important role in logistics system and its activities appear in various sections of logistics processes. Without the linking of transportation, a powerful logistics strategy cannot bring its capacity into full play. The review of logistics system in a broad sense might help to integrate the advantages from different application cases to overcome their current disadvantage. On the other hand, the review of transport systems provides a clearer notion on transport applications in logistics activities. The development of logistics will be still vigorous in the following decades and the logistics concepts might be applied in more fields.

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