Transportation and logistics management are two business units that work together to achieve a common goal. The primary goal is to move inventory efficiently and effectively throughout a company’s supply chain. Although the terms are used interchangeably, transportation management is a subset of logistics. It’s a mutually beneficial relationship that necessitates care and attention. Actively managing your supply chain saves your company money and time. In other words, you can’t afford to pass up opportunities because this critical service function isn’t prioritised. To better understand the connection between transportation and logistics in companies like DAMRI Logistic, consider the following example:
To reduce its investment risk, a pharmaceutical company wants to keep the least amount of inventory on hand. The management team of the company seeks to warehouse all stock in a central place because data gathering and analysis show that this is the best way to reach this aim.
What effect does this technique have on transportation? Deliveries made outside of the warehouse’s geographic area may be delayed, resulting in dissatisfied consumers. There is an even bigger risk of income loss when supplying sectors that are concerned about temperature and shelf-life issues. It is better to consider companies like DAMRI Logistic
Using the same scenario as before, if the corporation decides to focus on delivery times and transportation by asking customers to augment their purchases, it reverses the situation. Requesting unreasonable large orders from clients might further stymie the process. This position is ripe for discontent.