Factors affecting logistics industry

Inventory carrying costs are also significant with a share of about one fifth of total costs. In more congested areas, companies will need to consider more than just distance.

Logistics techniques

Again, this allows the respective firm to focus on their core activity. They include the costs of holding goods in inventory capital costs, warehousing, depreciation, insurance, taxation, and obsolescence and are commonly expressed as a share of the inventory value. The diagram above shows a high-efficiency wheeler long-haul truck. Providing additional value-added, fee-based services, such as custom installation and pickup of returns, could also improve revenues. Customer service encompasses receiving and processing orders from customers. Evaluating factors affecting logistics customer service performance. Effective logistics management of goods, services, and works involves certain processes starting from recognition of need, delivery to end users and payment to the suppliers. Warehouses have to double or triple their efficiency both in inbound, order management, pick- pack and delivery.

Encourages organized operations, which directly linked to labour, efficiency, asset utilization, and inventory accuracy. Conclusion In my opinion, transportation is both a traded services in its own right as well as pre- requisite for trade in goods and services.

Factors affecting international logistics management

More recently, there is a trend towards integrating the modes through intermodality and linking the modes ever more closely into production and distribution activities. Reference George, K. Modes Transportation modes are an essential component of transport systems since they are the means by which mobility is supported. Msimangira , K. Load time is a critical role in the shipping of your products. Considering the fact that logistics is the next big thing, the last-mile delivery space is probably going to over ride everything else. As the logistics plans very important role in supply chain management of any industry who try to delivery any kind of product to their customer.

Decreases freight costs through better truck utilization in both full. This part of the role of transportation in logistics may be termed as Micro Logistics, where at the firms level; the companies optimize this function for competitive cost advantage.

Activities that are strategic, IT-intensive and customer-facing tend to be outsourced to a lesser extent. Be more efficient with load times.

factors affecting distribution in supply chain management

Studies reveal that in India the total logistics costs constitute nearly 10 percent of the GNP out of which nearly 40 percent is because of transportation alone. The demand for more fuel-efficient vehicles is creating innovation opportunities, but at a higher capital cost for transportation providers.

Factors affecting international logistics management pdf

Research contributes to the understanding of the conditions that support success when outsourcing logistics. Srivastava, S. More from Entrepreneur Kim's expertise can help you become a strong leader, pitch VCs for capital, and develop a growth strategy. Introduction The council of logistic management defines logistics as that part of supply chain process that plans, implements, and controls the efficient, effective, forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customer requirement. From a logistics standpoint, the industry is expected to work on sensor technology that measures factors like traffic flow, area-specific volume and movement of people and infrastructural strength of the area. Opportunities in this Sector are Huge The contract logistics vertical is aggressively growing at around 30 - 35 YoY and there is a huge opportunity going forward. Management Science Vol 50 No. Transportation is the base of efficiency and economy in business logistics and expands other functions of logistics system. The efficient and effective management of this infrastructure to enable the smooth flow of goods constitutes Macro Logistics. Lalwami Tiba, 2. Modes Transportation modes are an essential component of transport systems since they are the means by which mobility is supported. In the U. E, Kristian andPekker, T. There are many methods that can help improve supply chain processes and in turn save business money.

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Key Factors That Impact the Transportation Industry