What is meant by transportation?
Answers:
Yes this is an important part of management. Simply it means movement of goods and services from one place to another. In operational terms it is not so simple. This is an important element of the entire budgeting exercise of the organization. It covers not only the "in ward" transportation of the raw material storage and availability at the production line, but also the "out ward" transportation of the finished goods towards the market place that includes warehousing, wholesalers and the ultimate selling point the retailers.
The inward part from the raw material sources to the place of production/storage bins is called "Physical Supply" .
The out ward part of the finished goods from the point of production to the market place ( warehousing, wholesellers, and retailers) is called "Physical distribution".
The inward movement as said above is also called the "Material Management". The out ward movement as said above is called the Marketing Logestics"
The sucess and failure of a product in a given market heavily depends on proper transportation stretegies.
In the present senario of globalization the whole area of transportation segment is interlinked with fool proof comminiction systems, so that at any given time the location of any particular cargo ( both at inward and out ward sectors) can be pin pointed for the benifit of the production team an as well as the marketing team to help them plan thier production/distribution strategies logically and on the least count basis.
The sucess of the global departmental stores and the automobile makers with global locations is primarily dependent on "on the spot delivery system" which is an off shoot of perfect tranportation management system.
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