When it comes to a logistics operation, transportation is the most visible (and arguably important) element. We consumers are used to seeing large trains and trucks shifting products, or vans being parked up at a distribution facility. Certainly, this allows us to see how big a role freight transportation plays, as it’s all around us, though it doesn’t help us to comprehend the depth of knowledge that is required to fully understand transportation’s role within a logistics operation. To the uninitiated, a truck goes from A to B, and that’s about as far as our understanding goes. However, there is indeed much more to it than that and we will aim to define it in this article. Thus, we are going to focus on the functionality provided by transportation and its underlying principles as part of a logistics operation.
What is the Functionality of Transportation in Logistics?
Here are the two main functions of transportation:
Product movement, whether it be in the form of electrical components, materials, or finished goods, transportation logistics services is vital in moving these to the next stage of either the manufacturing process, or the end consumer.
The primary function is moving freights up and down the value chain. Using financial, environmental, and temporal resources, this is made possible. Of course, damage to freight/goods being transported, or loss of products is to be kept at an absolute minimum. However, at the same time, movement must meet the customer’s demands including speed of freight delivery, performance, and the shipment information available.
Product storage is a secondary function of transportation logistics service, as very rarely will you find freight being stored in a vehicle overnight. Or at least, not unless it is locked down in a secure compound. The fact is, vehicles are expensive storage facilities, but when compared with the cost of loading and unloading products into a warehouse, it may be the preferable option. For a quick reference of pricing, you may refer to the table below for Transportify vehicle rates.
|Column 1||Column 2||Column 3||Column 4|
|Vehicle Type||Cargo Dimension||Capacity||Base Price|
|Economy (Sedan/Hatchback)||L: 3.5 ft|
W: 2 ft
H: 2.5 ft
|Economy Extra Space (SUV/MPV)||L: 5 ft|
W: 3.2 ft
H: 2.8 ft
|L300/Van||L: 7 ft|
W: 4 ft
H: 4 ft
|Pickup Truck||L: 10 ft|
W: 6 ft
|Pickup Truck Extra Space||L: 14 ft|
W: 6 ft
|Closed Van (4W)||L: 10 ft|
W: 5 ft
H: 5.5 ft
|Closed Van Extra Space (6W)||L: 14 ft|
W: 6 ft
H: 6 ft
|Long Pickup Truck||L: 21 ft|
W: 6 ft
|10-W Wing Van||L: 32 ft|
W: 7.8 ft
H: 7.8 ft
|Reefer Truck||L: 14 ft|
W: 6 ft
H: 6 ft
What Are the Principles of Transportation?
The Economy of Scale refers to the cost per unit of weight decreasing as a shipment size grows. As an example, a full truckload (TL) shipment cost significantly less than a less-than-truckload (LTL) shipment. Thus, it is always in your best interest to ship larger quantities of cargo freight at a time in order to get the best possible rates of distribution.
Large capacity transportation vehicles such as shipping containers & trains are also much less expensive per weight unit when compared to small capacity vehicles such as trucks, vans, or planes. One of the main reasons for this is due to the administrative costs involved with taking and processing a transportation order. In this digital age, a shipment of 200 products will take no less time to process than a single item—the same amount of ‘manpower’ is required in terms of administration and these costs are typically fixed across the board.
The Economy of Distance refers to transportation costs being lower as the total distance increases. If you have two shipments travelling 500 miles, and one travelling 1000, the latter shipment will be less expensive than the former two. Rates and charges taper with distance, as longer distances allow the fixed expense of loading & unloading is spread over more mileage, which ultimately results in a lower average.
The critical role of Transportation in Business
According to a study by Thomas J. Goldsby, transportation is considered to be a major contributor to the economy. And it is proven to be true as any business won’t function as expected without a successful supply chain. From the same book of the author, transportation is termed as among the vital economic activities for a business to operate. By moving resources and freight from different locations, and ultimately to its customer or where it is supposed to be processed. The 21st century now runs millions of stores across the world with different transportation needs and specifications. And the principles stated about is not just something an organization should follow, it’s what companies should adhere to. And below are the signs that show a succeeding business with the right transportation logistics services.
1Controlled inventory flow
A business that is able to fulfill order requirements shows its mastery of their respective transportation logistics services management. This also takes into account the optimized utilization of resources and warehousing capacity.
2Becoming the partnered service provider
Being the first choice of a multinational company for a specific task is considered the cherry on top for any delivery service providers. This means that you, as a service provider, can manage the complexity of needs of these huge companies. Effective transportation logistics services are always efficient in terms of resources and expenses and are smart enough to come up with new strategies every day.
In this era of technology, everything has to be connected. Small startups rise fast, even surpassing established brands just because of being innovative and pioneering in taking advantage of technology. Who would have thought that in these times everything will be dependent on the internet and mobile devices. Printed documents are now replaced in digital format. Transactions are even done remotely. And more and more technology is developing fast. An effective transportation logistics service is no different in these changing times.
4Sustainability efforts to lessen carbon footprint
With the global effort to decrease our consumption of resources and the search for renewable energy, the transportation logistics services industry is one of the big contributors in carbon footprint. The logistics cargo industry depends highly on fuel for its services, thus its timely for transportation logistics services to have initiatives in sustainability.
Transportation logistics services are as essential to make any business system work. And top organizations around the world have mastered the management of their respective supply chain by adhering to the principles of transportation. So if you want to be part of the best, call Transportify now to guide you in unleashing the potential of your business within.
Frequently Asked Questions:
What are the principles of transportation that top companies adhere to?
🍍 The principle of transportation is efficient delivery and optimal spacing of freight. It should always be in your best interest to ship large quantities of freight at a time in order to get the best value for your expenses. By doing so, it can help your company save a lot of money. It’s one of the simplest ways to also lessen your carbon footprint and helps your organization contribute to sustainability.
What are freight delivery services that offer full truck load?
🍍 Van or truck rentals offer their vehicles to deliver to any destination you need. For trucking services, it is common that you rent the entire vehicle and pay depending on the distance it will cover. There are instances where you will not be able to utilize the entire space of the vehicle. Top trucking companies such as Transportify, MMG, RLH, and others let you choose from different sizes of trucks. For example, downloading the app of Transportify lets you select your choice of vehicle. This is ideal to choose the best vehicle for your needs while helping you minimize your expenses.