In the classical view of the relationship between transport and logistics, the role of transport is emphasized as a fundamental element within the logistics system. The need to move cargo occurs at the stages of supply, production, and distribution, and can be carried out using various means of transport, depending on the quality requirements formulated by the client. This perspective characterizes the approach to the process of transferring products and information typically from the customer’s point of view.
Transport services in logistics systems
In logistics systems, transport plays a fundamental role. It is estimated that about 80% of all logistics functions consist of transport problems, i.e., warehouse management, storage, transport of materials and finished goods, location of supply and distribution centers, availability and use of transport means, application of appropriate transport technologies, unitization of cargo, and transport organization.
The transport process constitutes an organizational and technological sequence, integrating material and information supply, production, distribution, operational, and regulatory activities with the phases of transport, transshipment, and storage of cargo. Its task is to ensure the efficient flow of physical goods from the moment of production until their use, which means that transport handles not only the broadly understood delivery of raw materials and distribution of finished products, but also the handling of returns, service support for operational processes, or the collection and recycling of waste generated in the production process.
Transport and freight forwarding companies provide services that are a fragment of a complex supply chain. They can be either a direct service provider for companies or a subcontractor to a logistics operator who integrates individual elements of the entire supply chain. Clients are increasingly abandoning in-house cargo handling in favor of the activities of specialized companies and require transport companies operating on the market to expand their service offerings and provide a comprehensive package of logistics services. The content of such packages is shaped according to customer needs. A logistics service package may include services belonging to four groups: basic services, additional (service) services, information services, and financial services. The basic component of the packages is the transport and storage of freight shipments commissioned by industry and trade. These are accompanied by service activities, such as inventory management, quality control, or direct marketing support. These services create added value in relation to the basic services, which are the physical movement and storage of cargo. Often, this value would be unattainable if performed in-house. The package may also include IT services – for example, a system for handling customer orders and providing current information on the status of shipments. Some companies also include financial services in their offer, such as cash on delivery. The segmentation of logistics services is presented in detail in Table 1.
Efficient transport management, both on the supply and distribution side, is one of the primary tasks of a logistics operator. Transport should be organized in such a way as to enable the company to maximize production and sales at the lowest possible logistics costs.
The article comes from the magazine “Logistyka” 2/2009.