The appropriate mode of transportation in a supply chain must be selected at every point of the transport and logistic cycle. Transportation provides mobility to capital and labour. This encourages labour and capital to invest in more productive sectors. Home The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of anyone else. Read more… Terms of Use. Clipping is a handy way to collect important slides you want to go back to later. we respect your privacy and take protecting it seriously. They traverse roads alongside railways to move products across the land efficiently. While supply chain management refers to a sequence of processes involved in the production and distribution of a product, logistics is a general concept that can be applied to many different areas such as business, military and transportation. Most of the things around us came from somewhere else as they were manufactured in different countries, packaged and distributed with the help of the transport industry across the world. The prioritization of shipments is essential in transportation. Home » The Key Functions of a Supply Chain Transportation Management System (TMS) The Key Functions of a Supply Chain Transportation Management System (TMS) April 30, 2020. Looks like you’ve clipped this slide to already. A supply chain as mentioned earlier, is a network of bodies that work towards providing a good or service for the final consumers. Figure 1-2 Links and nodes in a supply chain. THE ROLE OF TRANSPORTATION IN SUPPLY CHAIN MANAGEMENT Transportation involves the movement of materials, component parts and products from one location to another right from the source to the final destination. For this reason, the larger economy is affected when transportation disruptions occur. Effective management of a supply chain equates to managing business relationships among companies and their supply chain partners which include customers and suppliers. Transportation is used to enhance customer service. Learn more. Page maintained by, The Role of Transportation in a Supply Chain, 8 Steps + Materials needed to Make Liquid Air Freshener, 8 Steps to Produce Toilet Soap in Nigeria. The transportation in supply chains must be segmented to reflect these often complex realities. Our aim is to provide daily living guide for Nigerians and her friends. It is important for every organisation to make available, a responsive and affordable transportation network as this is the backbone of its ability to satisfy customer services at a reduced cost because the absence of this will lead to an increase in the cost of goods and services. For movement of goods from the supplier to the buyer, transportation is the most fundamental and important component of logistics. 2. Today’s supply chain management systems must not only be able to provide real-time data but also to integrate data across the supply chain and to support real-time decision making in response to changing conditions. Required fields are marked *. Use code BOOKSGIVING. Today, international trade is commonplace and increasing market share in emerging markets is highly desirable. According to sector research (Chang, 1998), transport accounts for as much as 30% of the total cost of logistics operations – almost as much as Warehousing and Inventory together! It is the duty of the person in charge of the supply chain to choose the most convenient, effective and economical means of transportation that befits the company or organisation. Technology, for one. As products move from one location to another, and from the supplier to the customer, the needs of the customer must be at the heart of the transportation system. MPO. The road ahead is therefore still long, but the systemic impact of transportation-related figures clearly demonstrates that transportation is much more than just the financial drain associated with trucks, pallets, and warehouses. That said, while a Bloomberg survey reports that 73% of Supply Chain Managers are undergoing this shift in attitude toward transportation and identifying transportation as their key focus in 2014, the same survey also reported that the current adoption rate of transportation solutions is somehow lagging – with 46% of participants reporting current use of a solution, and another 22% reporting plans to adopt one in 2014.