Explain the functions of Transportation in Logistics

Transportation functionality: the functions of transportation in Logistics

Transportation Functionality provides two major functions which are described below:

Product Movement

To move various types of products whether it is raw materials, components, semi-finished goods, packaging material, scrap, and so on, transportation is very essential. While moving semi-finished goods or W.I.P., transportation moves them to the next stage in manufacturing, whereas while moving finished goods, it plays a role of physically bringing the goods closer to the ultimate consumers.

• Transportation of a product involves the use of temporal (time) resources. A particular product is inaccessible while it is in-transit. Such types of products, are called in-transit inventories. These products are significantly important because they influence a  variety of supply chain decisions.
• Transportation of a product involves the use of financial resources. Transportation of a product involves various costs such as cost of driver, cleaner, fuel, taxes, repairs/ maintenance, etc.
• Transportation of a product also uses environmental resources either directly or indirectly. In direct terms, transportation uses a, very large amount of energy in terms of fuel and oil. In indirect terms transportation creates environmental expenses in terms of congestion, air-pollution and noise pollution.

Product storage

One of the functions of transportation is temporary storage of goods. This function may be called as the secondary function of transportation as transportation is not meant for storage of goods. E.g.: In case the goods have to be moved once again within just a few days. It is advisable to keep them stored in the transport vehicle themselves. This will avoid the cost of unloading and loading as well as the possible damage to goods during such operations.