Nobody downloaded yet

How Companies Can Decrease Transportation and Logistics Costs - Research Paper Example

Comments (0) Cite this document
The basic motive of this project is to find out how companies can decrease transportation and logistics costs. The logistics comprise of warehouse inventory, managing stock and freight transportation. Logistics basically comprise of moving the inventory from its origination to its final destination…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.3% of users find it useful
How Companies Can Decrease Transportation and Logistics Costs
Read TextPreview

Extract of sample "How Companies Can Decrease Transportation and Logistics Costs"

Download file to see previous pages Logistics is a term that got recognized in the 1950s. The trend of nationalism and globalization has been one of the most essential triggering factors to its initiation. In terms of the industrial organizations, its main purpose is to optimize the existing production and distribution processes using the same resources based on such management techniques that promote maximum efficiency and gives a higher competitive edge.
The key element in the logistics chain can be said to be the transportation system. Transportation is a function that joins separated activities and occupies one-third of the logistic costs. That’s why the impact of it on the logistics system is considered to be huge. From the collection of the raw materials and the manufacturing of the final product, to the distribution and achievement of final returns; transportation plays a vital role throughout. The achievement of maximum benefits can only be fulfilled by the streamlined flow and a good coordination between all the functions being performed in the organization.
Previously we have stressed enough on the importance of the role of transportation factor on the logistic costs. Pertinent now is the utilization and implementation of such logistical activities that contributes to the effective supply chain management. Transportation is one area which has a tendency to add to the unnecessary supply chain costs. For instance the cost of the transport operation can be escalated by inefficient load planning which might also have an impact on the customer service levels. Ineffective scheduling or routing of the products can also impact the transportation costs. Similarly, ineffective and inefficient transport and even the wasteful ware house management, in relation to the production process can be detrimental to the supply chain processes. In view of all that is mentioned above, we can redefine the work of transportation component of the logistics from meeting low cost and high efficiency to meeting elevated service requirements and increasingly lower costs to provide a strategic edge. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(How Companies Can Decrease Transportation and Logistics Costs Research Paper, n.d.)
How Companies Can Decrease Transportation and Logistics Costs Research Paper. Retrieved from
(How Companies Can Decrease Transportation and Logistics Costs Research Paper)
How Companies Can Decrease Transportation and Logistics Costs Research Paper.
“How Companies Can Decrease Transportation and Logistics Costs Research Paper”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF How Companies Can Decrease Transportation and Logistics Costs

Logistics and Transportation as a Category within a Category

...merchandises delivered over long distances, and that they reach your destination on correct time and are circulated to the correct locations. Transportation expenses are normally 5-6% of a company’s income and a main provider to overall product expenses. Superior transportation management assists organizations improve their overall effectiveness of supply chain. “The longer lead times with global suppliers, volatile fuel prices and risks such as unavoidable delays, make estimating the cost and time associated with transportation difficult. As a result, companies incur high expedite and inventory costs”...
26 Pages(6500 words)Essay

Logistics Management and Transportation System which the fierce competition in the global market is heading –an intrinsic relationship between logistics and transportation (Neuschel, 1982) In this regard, it can be maintained that as the competition in the global market become more stringent, evolution in the fields of logistics and transportation have moved away from mere adding little value to the organisation towards being crucial factors in establishing the market niche for the organisation (Langley, 1986; Zhao, Droge and Stank, 2001). 2.1.1. The Advantages Traditionally, logistics and transportation have been considered as adding little value to the...
45 Pages(11250 words)Dissertation

How can insurance be used to decrease healthcare costs and increase quality of care

...Running head: Healthcare insurance system to decrease costs and increase quality How can insurance be used to decrease healthcare costs and increase quality of care Introduction The health care industry of United States accounts for $2trillion and America spends a larger proportion of its gross domestic product for healthcare compared to many of the developed countries. Although the technologies and the treatments are highly advanced in this country compared to any other country, because of the high costs involved, these facilities are becoming increasingly inaccessible to a large share of population. The people who are...
25 Pages(6250 words)Essay

International Logistics Road Transportation Industry in Turkey

...International Logistics Road Transportation Industry in Turkey Road transport serves 95% passengers and 90% of freight in Turkey.Transport demand in Turkey has grown significantly over the past five decades. Overall, demand (measured in passenger-kilometre and tonne-kilometre) has grown at an annual rate of nearly 8% since 1950. Demand for road transport has grown at an annual rate of about 7.6% while rail transport demand has grown by about 2%, demand for water transport by 5% and air by over 16% per year. As in most developing countries, road transport is becoming a much more significant mode for both freight and...
4 Pages(1000 words)Essay

Chinese Logistics Companies

..., obsolete information technology and haphazard planning of capital construction in the national transportation system and so on restrict the development of the logistics industry in China. However foreign competitors pay attention to this potential market due to the fact that their existing operational capabilities elsewhere can be effectively utilized in China. Flynn (2006) argues that foreign logistics companies entering the Chinese market, especially after WTO accession, brought tremendous pressure to bear on the local companies. This situation forces them to improve their technology and reformulate their strategy. At the same time,...
19 Pages(4750 words)Essay


...Transportation General Aviation General aviation entails all flying civilian, in exception of passenger airlines with schedules, and military operations. It also includes diverse flying as a medical emergency evacuation, overnight delivery packages, weekend visit back home, and aerial application of keeping helicopter traffics informed. Many people are discovering that GA is providing new travel opportunities with vast efficiency, and safety. Its payoff is productive and flexible than other travel models. Flying GA aircraft is within capabilities of an average person physically and intellectually. This paper seeks to explore general aviation and its influence on flight training as its sub-topic (Williams, 2011). Flight...
2 Pages(500 words)Essay

Logistics Transportation Cost Analysis

...that there will be realistic interventions about how existing issues of logistics cost can be addressed within organisations. Waters (2003) lamented of the high degree of cost associated with logistics transportation, which makes companies fail on realising the real advantages that should come with SCM. Such problems have come about because most of these companies have not used the right approach to transportation optimisation. The reason this is said is that we are now in a modernised business climate where most activities of organisations have been digitised and...
5 Pages(1250 words)Outline

Determining How Costs Behave different level of business activities. The behavior of cost is related to the level of business activity (“Identifying Cost Behavior”, n.d.). It implies that a change in business activity exerts influence on the parameters of the above equation. This reaction of it is called cost behavior. Some costs may stay same, and others may change proportionally in response to a change in business activity. That is why; for managers of a company, it is necessary to understand how a cost reacts to a change in the business activity. This knowledge helps managers to determine future profit from a new product, prepare a...
2 Pages(500 words)Research Paper

Necessity of Companies Having Accurate Product Costs

...Necessity of companies having accurate product costs Table of Contents page 3 2. Introduction page 4 3. Importance of accounting : page 5 4. Accounting conventions and the product costs : page 6 5. Conclusions : page 11 6. References : Page 12 Abstract Accounting is one of the core functions of an organization. It is absolutely impossible for an organization to function without an accounting department. Accounting helps an organization realize the financial status of an organization at a particular moment. Business strategies are often formulated with the help of the financial statements formulated by the accounts department. Accounting concepts and conventions...
10 Pages(2500 words)Case Study

FedEx Transportation and Logistics Service Provider

.... This was mainly for those customers who are in business of telecommunication, biomedical, semiconductors and high techno industries (HIS, 2006). It also came out with hybrid electric delivery truck and became environmental leader because this factor fulfils two purposes i.e. environmental health and business operation effectiveness (EDF, 2003). FedEx has adopted many strategies in its path to success till now. In 1992, when logistics and the transportation companies were facing high competition in price, customer segmentation and quality of delivery, FedEx had implemented cost cutting strategies so that they can invest that capital in customer...
17 Pages(4250 words)Term Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Research Paper on topic How Companies Can Decrease Transportation and Logistics Costs for FREE!

Contact Us