Transportation is simply the movement of people, materials, and products from one place to another. Simply put, transportation is defined as any act of movement of a living thing or an organic object from place A to place B. The transportation services material or products by land, air, or water usually involves a transfer of one nonliving object from A to B. Transporting living things involves the transportation of living things between locations. This includes transportation of people and vehicles between destinations.
People, vehicles, and products are transported from A to B by one location, usually an end-user location. An end-user location is defined as the location that delivers the product or service to the final location. The transportation services that an organization delivers can also include the distribution or gathering of resources at the destination. Some forms of transportation services do not require the physical transportation of resources, such as the collection of utility services. Other transportation services require physical resources at the destination, such as receiving, packing, and international shipping.
The transportation of goods and services can be either internal or external. Internal transportation refers to the movement and storage of resources within an organization. External transportation refers to the movement and delivery of resources outside the organization. Internal and external transportation services can be delivered by various means including freight services, vehicle fleets, air freight, sea freight, trucking, rail freight, ferry services, and others.
Effective logistics management :
Effective logistics management helps organizations achieve their goals. This involves an integrated whole-of-life approach to transportation. It takes into account planning, development, operation, maintenance, sales, marketing, and customer needs. It enables transportation companies to provide optimal services in terms of operational costs, storage and access, and environmental impacts. It also focuses on meeting supply chain objectives through efficient supply chain management and extended supply chain.
In order to maximize transportation services, transportation companies need to integrate their operations closely with the customer’s requirements. Interchange of information and interaction between parties is a core functionality of effective logistics management. One example of integration is that between a trucking company and a manufacturer of trucking equipment. Trucking companies supply the materials and resources used in manufacturing to the manufacturer, who then supplies the personnel, material, and technology used in producing the truck for delivery to the customer.
Demand fulfillment is another important factor in transportation services. This involves the transportation of goods when the demand for them is highest. For example, the United States Army Corps of Engineers manages a massive logistics network to meet the demand of a variety of military requirements. They have over 500 transportation trucks, maintenance and storage facilities, and thousands of trailers and other vehicles to help meet the demand of diverse and extensive goods that are required in their operations.
The transportation services providers:
The transportation services provided by transportation companies also create a monopoly in the industry. A monopoly ensures that a certain set of goods is available. With the introduction of DSH (direct shipping services), it has been made possible to deliver the same quality of service as offered by trucking companies at a lower price since there is no competition among transportation services. Since companies act as if they are competing for a market share, there is pressure to introduce innovative ideas such as DSH. However, this serves only to increase costs since the introduction of DSH reduces competition among transportation services and thereby increasing costs, thus reducing profitability.
To ensure a better analysis and management of the transportation needs, there are several financial need cases being taken into consideration in Canada. For example, one case is when a public company needs to increase its fleet but cannot afford to invest in new vehicles. The solution, in this case, would be to outsource the USA limo services required by the public company. Another financial need example is when a company needs to purchase and maintain a fleet of trucks and other vehicles in order to provide low-cost services to the customers. To provide this service cost-effectively, it is better to outsource the work than to buy new vehicles. In short, a number of financial need cases are there which can help in the analysis of transportation services in Canada.