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STUDENTS' CORNER - 155

Generally things are not consumed where they are produced; this fact necessitates transporting products from the place of production to the place of consumption.

Transportation functions as a primary factor in keeping the supply chain effective.  Movements of goods, products or even the service personnel constitute the very foundation of any business enterprise. Movement can be any mode of transport, land, air and seas, depending on the contingency of business commitment.

With ‘Green’ having captured the universal concerns in a right way, any business would do well to see to it that it makes its customers understand that they are very much attentive to reduce emissions as much as possible by choosing such modes to transport, rather such transport companies that have made a point to reduce emissions in their transport. Customers generally appreciate the manifestations of social responsibility in business transactions.  Health, personal and social, cannot be neglected.

Many international companies with sprawling business interests have found it important that they should have a system that monitors the movements of the products effectively through efficient transport. You must know where your products are now at present moving to which places. This keen monitoring of the movements of the products, of the vehicles that carry the products goes a long way in preventing serious lapses; the most serious one is the customer not getting his product at the right time in his place in the right shape.

Transportation management has many benefits to offer.  First of all, it sees to it that the supply chain is not disrupted.  Any disruption to the supply chain will have often far reaching negative consequences such as delayed delivery of the product to the customer leading sometimes to the exit of the customer from the business ambit. No greater damage to the business enterprise can be done than by an exit of a customer.  Retention of a customer must not be lost sight of by any business management personnel. Acquisition of a new customer is more demanding and a great complex challenge.

There is another advantage; efficient planning of the movements of goods including raw materials both from and to, and other ancillary movements of requirements helps keep the inventory low. Indeed, it demands careful planning of all the marketing people with necessary interactions with the supply chain. No doubt, low but unfailing inventory costs less to the company which is very important. 

Ultimately, the guiding principle is customer satisfaction. Understanding customer is very fundamental necessity to satisfy him and understanding customer requires constant interaction with them in any possible way.

Having seen the importance of transportation in the supply chain management, we shall move on to the next driver in our next session: Information.