The means of efficient transportation are an indispensable component of modern civilization. The economic development of a country depends largely on an efficient and adequate system of transport. They form a very important class of instrumental wealth.
Most of the Transport and Communication system in India is mostly owned by corporate bodies and the state, and rarely by single individuals. They help in the creation of what we call place utilities in production.
No country in the world today can build up its prosperity unless it has a highly developed system of communication and transport.
Development of an efficient transport system is a pre-condition of our economic development. Transportation and Communication have an important bearing on the development of exchange and markets. They:
- Increase land values,
- Break economic circles, and thus tend to equalize prices,
- Make labor more mobile,
- Enable a greater division of labor among different industries and countries,
- Determine the geographical distribution of industries,
- Break economic circles, and thus tend to equalize prices,
- Play a very important part in relieving distress in the famine-stricken areas by rapid distribution of food-stuffs,
- Effectiveness of administration and national defense are inseparably connected with the advancement of transport system.
Efficient means of transport are a necessary accompaniment of the modern economic organization, in which production takes place on a large scale, raw materials, coal, etc., come from distant places, and the commodities produced sometimes required to be distributed not only in different parts of the same country, but over the whole surface of the globe. Cheap carriage widens market for the sale of commodities.
Industrial and commercial activities can be carried on efficiently only if the communication system is highly modernized. However, transport would not develop, unless there is a demand for an agency for the transit of goods. Thus, industrial and transport developments have to go side by side. The dependence is mutual and not one-sided. It is with the help of these modern rapid means of communication and transportation that our big cities have been growing in size, for they make the inflow of the requirements of life sure.
Facile transportation is the key to modern industrial organization, and enables the development of the resources of a country. It is for these reason that every progressive country in the world gives so much importance to it. It is all the more important, in a country like India with vast undeveloped areas and a huge population.
Benefits of transportation management
- TMS Logistics & Visibility
Proper transportation management begins with a transportation management system (TMS). A TMS will automatically tender loads, track shipments, and gather and analyze historical performance data. This data, often referred to as big data, allows a company to see what’s happening in its shipping operations. Once visibility is gained into transportation operations, changes can be implemented to increase efficiency and customer satisfaction, reduce transportation spend, and optimize packaging or stored procedures that are harmful to overall supply chain goals.
- Inventory Flow
Effective transportation management keeps a company’s whole supply chain running smoothly. With successful transportation execution, inventory can be kept lean and can be moved in and out of a warehouse quickly and efficiently. This improves warehouse efficiency, reduces overall lead time and saves money on storage. Supply chain disruptions can be costly while hurting customer satisfaction and loyalty. Creating effective inventory flow through transportation avoids damage caused by the disruption.
- Sustainable Logistics
Consumers are more and more aware of what it is they’re buying and what ideals a company subscribes to. Also, transportation is an emission-heavy industry. Customers want to buy from companies who take social responsibility seriously and work hard to reduce their carbon footprint and minimize their energy consumption. Having inefficient transportation processes increases these environmentally-hazardous processes. Also, it can make a product unappealing to a customer due to the harm that comes with it.
- Preferred Shipper Status
The ATA estimates the transportation industry is currently short 48,000 truck drivers. This shortage is expected to grow to 239,000 by 2022. A truck capacity crunch is due to the significant lack of drivers. Since there is much less trailer space to go around, shippers must compete to secure capacity. A company that has optimized transportation processes, such as short dwell-times and long tender lead times, will be a preferred shipper and have an easier time finding capacity because carriers will want to work with someone who boosts their efficiency. Having access to reliable capacity in the coming years can save logistics costs. Additionally, it can continue to provide a high level of service for customers.
- Customer Satisfaction
The processes in between procurement and shipping can be long and complicated, but out of all of these processes, transportation is the one where a company has direct contact with a customer. The point of delivery reflects the competency of the entire organization – if a company is constantly delivering products late, the customer will have a very negative view of this company and will likely not use their services again. Last mile logistics, the last stretch before delivery, is complex, costly, and it is often this part of the delivery that causes disruptions and delays. Proper management of transportation can ensure high delivery performance and consistent customer satisfaction. Therefore, the importance of transportation management is hard to overestimate.
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