Supply Chain Management - Essay Example

Transportation plays an important role in the supply chain management because, SCM basically categories in 3 areas; purchasing, manufacturing and transport. A supply chain manager looks into the fundamentals of material to be as input, it distribution, quantity and transportation associated with the delivery of finished products. For this purpose a term of SCM is used which is known as, logistics management. Logistic management is where the collecting of raw materials, its intermediate process and delivery of goods from origins to the final destination is being recorded.

Today, the goods are even getting exchange on international level called as, international trading. Moreover, goods are not often getting consumed where they are originally produced. Hence, there is no doubt in saying that, transportation service is the key component which unites all the other components of supply chain management. Logistic management also looks into the efficient cost to be in the process of transportation. An effective economical transportation allows an organization to reduce the cost and increase the customer services to bring up the company in competitive market area.

Overall, transportation is the main ingredient between the firms to further execute the businesses. If the presence transportation didn’t exists in the first place, then it would have been impossible for the businesses to transact the business deals both domestic and internationally. How well the logistic management manages effective and less cost transportation leads towards a successful and profitable business. The word Warehouse refers to a place, where an organization stores its goods for a temporary period of time.

The need to occupying warehouse in the industrial area occurred, when people came up with the time management difficulties between a product’s product and its consumption. As a solution to this problem, the need of