TRANSPORTATION AND LOGISTICS

Transportation

Transportation is a process in which objects are moved from one place to another. Such objects may be living beings or goods that require transportation to shift from their present location to a new location. The term “transportation” has been derived from the Latin word “trans” which means ‘across’ and “portare” which means ‘to carry’.

Components

An effective transportation system requires a good design.  Such design is the domain of urban planning where civil engineers work to prepare a good transportation plan.  Similarly, vehicles in transportation are the domain of mechanical, nautical, or aerospace engineering while finance in transportation is the domain of financial administrators. 

Transportation and communications

The two terms transportation and communication are complements of each other. They may at times substitute each others. Communication is vital for transportation. For example, to run two trains on two parallel rails, to fly multiple aircrafts on the sky, or to run vehicles on a busy road requires both traffic control devices and communication system. Else, transportation may end up in disastrous accidents. Increase and improvement of transportation needs better communication and vice versa.

Logistics

Logistics ordinarily means putting everything in order. Logistics can be defined as having the right quantity at proper place at appropriate price. Logistics is indispensable for industries and this is because logistics deal with perfect life cycles and uninterrupted supply chains. Thus logistics helps in increasing the efficiency and productivity in an organization.

Origin

It is believed that the concept of logistics first evolved in defense organizations. History reveals that Greek and Byzantine military forces had officers with the title ‘Logistikas’ dealing with logistics. Logistics was essential for systematic and fruitful movement of the forces. Logistics thus was originally closely connected with military transportation system.

Logistics in business

Logistics made its appearance in the world trade when exports and imports became complicated during the late 1940s. By 1950, logistics had a firm footing in any progressive business concept. The focus of logistics was on internal process and external supply chain. Procurement, storage, and transportation required proper planning and thus became heavily dependent on the concept of logistics. This also gave rise to a set of professional logistics managers who had good knowledge of all the three wings of logistics. Logistics can therefore be termed as the art and science of managing and controlling flow of goods, and other resources including information, in an organization.