Importance of Logistics and Transportation in Supply Chain Management

Importance of Logistics and Transportation in Supply Chain Management

Logistics and transportation are two of the most important aspects of supply chain management. If logistics are done improperly, it can cause a bottleneck in the entire supply chain and disrupt the flow of goods. It’s best to prevent this from happening as much as possible because it can be very costly to fix. Your business will also suffer from a loss of reputation if logistics are not done properly.

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Transportation is also critical, as it is responsible for getting products to their destination on time. This article will discuss the importance of logistics and transportation in supply chain management and how they work together to keep your business running smoothly!

What Should You Know About Logistics and Transportation?

The term logistics refers to the process of planning, executing, and monitoring the efficient flow of products, services, and information from source to destination. Transportation is the movement of people or goods from one place to another. Together, transportation and logistics make up the supply chain management system.

Supply Chain Management refers to integrating and coordinating all logistics activities with transportation to minimize the transit of products and services from suppliers to clients. The goal of SCM is to minimize waste and costs while maximizing customer satisfaction.

Why Are Logistics and Transportation Important?

Logistics and transportation are important because they ensure that products are delivered to customers on time and in good condition. They also play a vital role in reducing the overall cost of goods and services. In addition, transportation and logistics can help businesses to expand their operations by opening up new markets and increasing their customer base.

To give you a better idea, here are some of the reasons why logistics and transportation are important:

Coordinated logistics can help your business grow

A coordinated logistics system can help your business expand by opening up new markets and increasing your customer base. This is because a coordinated logistics system enables you to ship products to multiple destinations quickly and efficiently.

Consumers are more likely to purchase products from businesses that offer efficient logistics. This is because they know that their orders will be delivered on time and in good condition. Therefore, if you want to attract more customers, it is important to have a well-organized logistics system in place.

Reliable logistics can increase your business value

Another reason why logistics is important is that they can help to increase your business value. This is because consumers are willing to pay more for products delivered quickly and in good condition. Therefore, if you can offer a reliable logistics service, you will be able to charge a premium for your products.

A high business value can also lead to more business partners and investors being interested in your company. This is because they know that you are a reliable and efficient business that can be trusted to deliver on its promises.

Reduce cost and improve efficiency

Logistics and transportation can also help businesses to reduce their overall costs. This is because a well-organized logistics system enables businesses to ship products more efficiently and avoid delays. In addition, logistics and transportation can help businesses to improve their overall efficiency by reducing the need for manual labor.

For example, if you are shipping products to multiple destinations, you will need to hire additional staff to pack and load the products onto the vehicles. However, if you have a logistics system, you can use automation to pack and load the products, reducing your labor costs.

Gain an advantage over the competition

Another benefit of having a logistics system in place is that it can give you a competitive advantage over your rivals. Offering better logistics can help you to attract more customers and business partners. In addition, it can also help you to win more tenders and contracts.

Having a good reputation for delivering products quickly and efficiently can help you to win more customers. This is because potential customers will see you as a reliable and trustworthy company that they can rely on.

As you can see, logistics and transportation are important for businesses of all sizes. If you want your business to succeed, it is essential to have a well-organized logistics system in place. Logistics can help your business to grow, reduce costs, and improve efficiency. In addition, it can also give you a competitive advantage over your rivals. Therefore, if you are not already using logistics, now is the time to start.

Vehicle TypeDimensions/
Weight Limits
Base Price
(Metro Manila)
Base Price
(Outside Metro Manila)
Base Price
(Visayas/Mindanao)
Wing VanWing Van 32 to 40 x 7.8 x 7.8 ft
12000kg to 28000kg
7500 PHP6500 PHP6500 PHP
6w Fwd Truck18 x 6 x 7 ft
7000kg
4850 PHP4850 PHP4850 PHP
Closed Van10 to 14 x 6 x 6 ft
2000kg to 4000kg
1800 PHP1450 PHP1450 PHP
Open Truck10 to 21 x 6 ft x open
2000kg and 7000kg
2300 PHP1950 PHPN/A
Mini Dump Truck10 x 6 ft x open
2000kg
1500 PHP1200 PHPN/A
L300/Van8 x 4.5 x 4.5 ft
1000kg
430 PHP330 PHP310 PHP
Small Pickup5 x 5 ft x open
1000kg
310 PHP250 PHP220 PHP
Light Van5.5 x 3.8 x 3.8 ft
600kg
250 PHP192 PHP225 PHP
MPV/SUV5 x 3.2 x 2.8 ft
200kg
160 PHP130 PHP140 PHP
Sedan3.5 x 2 x 2.5 ft
200kg
140 PHP110 PHP120 PHP

SEE ALSO:

Tips on How to Streamline Transportation in Supply Chain Management

Optimizing or streamlining your transportation in supply chain management by hiring a 3PL is crucial to running a cost-effective and successful business. That’s because logistics make up a significant portion of your total supply chain costs. Logistics and transportation can account for as much as 60% of your total supply chain costs.

So, how can you optimize your transportation in supply chain management? Here are a few tips:

Use technology to track shipments and optimize routes

To streamline the transportation in supply chain management, you need visibility into your shipments. You can use technology such as GPS tracking to track your shipments and identify the most efficient routes.

Use data to identify areas where you can improve efficiency

Data is crucial to optimize your logistics. By analyzing your data, you can identify areas where you waste time and money. For example, if you notice that a particular route is consistently delayed, you can look for alternative routes.

Automate shipping process as possible

To simplify the transportation in the supply chain management, you should automate as much of the process as possible. Automation can help you to lessen errors and be more time efficient. Having a system in place will also make tracking your shipments and optimizing your routes easier.

Work with logistics providers that offer real-time tracking.

It is important to work with logistics providers that offer real-time tracking. This way, you can always know where your shipments are and identify potential delays. In addition, real-time tracking can help you to make changes to your routes if necessary.

Make Partnership with Transportify

Of course, the best way to optimize transportation in supply chain management is to partner with a reliable logistics provider like Transportify. We offer real-time tracking and a wide range of other features that can help you to streamline your transportation in supply chain management.

Transportify is also a cost-effective solution for supply chain management for businesses of all sizes. We offer affordable rates and flexible payment options to suit your budget. In addition, we have a wide range of vehicles that can accommodate any type of shipment.

Contact us today to learn more about how we can help you. Our team would be happy to discuss your specific needs and provide a tailored solution for your business.

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Frequently Asked Questions:

What are logistics and transportation in supply chain management?

🚚 Logistics and transportation in supply chain management refer to the process of organizing, storing, and transporting goods.

How can I optimize logistics and transportation in supply chain management?

🚚 You can use technology to track shipments and optimize routes, automate as much of the shipping process as possible, and use data to identify areas where you can improve efficiency.

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