The Importance of Global Transportation and Logistics Management

Topic: Logistics
Words: 683 Pages: 2

Globalization has altered the way we conduct trade and facilitated novel ways of doing trade. It consisted of merely exchanging goods and services in the past; it has grown exponentially to include business between countries. Global transportation and logistics management is a growing field that involves timeliness, efficiency, customer satisfaction, and accountability. It is an integral part of any organization and generates revenues for businesses if implemented correctly.

Good transportation is a key feature of effective business as organizations must provide customers with products efficiently and on time. In this way, an effective transportation system allows the timely delivery of products (Zijm et al., 2018). These systems apply strategies that aid in discerning the safest and most cost-efficient way to conduct business, enabling a company to remain profitable while competing against numerous businesses. Such software as Enterprise Resource Planning (ERP) helps organizations reduce data entry errors (Zijm et al., 2018). ERP also aids a company in decision-making through efficient and closer supply and demand logistics management. In this way, a company exhibits good warehouse functioning and reduces the additional cost involved in freight management.

Furthermore, global transportation and logistics provide customer satisfaction. As the primary success and key driver, this facet helps organizations reach the most critical aspect of their work, customer satisfaction. The system is also known as analytics and reporting. This helps businesses examine and understand the impact of choices, whether they boost or lower efficiency (Zijm et al., 2018). Companies must note that they choose various parameters, such as insurance, costs, and delivery time, when determining the best carriers. This system aids the entity when tracking patterns and considering the efficacy of each choice (Zijm et al., 2018). As such, a business can provide goods or services at a reduced cost compared to a system with great inefficiencies. Good transportation systems also ensure customers get their products on time and in the right condition.

Global transportation and logistics also provide businesses with a paper trail and alleviate the potential for forged payments and unnecessary charges. Consolidation and audit software aid companies, resulting in lower freeing bills by almost 5% (Zijm et al., 2018). They use accounting software that does not make erroneous calculations and provides optimal shipping conditions. These management systems enable businesses to boost their cash flow and prevent fraud. It is also important to note that a good accounting system alleviates the potential for a company to experience risks related to inaccurate accounting (Zijm et al., 2018). It avoids possible litigation through proper accounting principles emphasized through the management systems.

Transportation management systems are a key component of any global business. It has enabled organizations to flourish while providing customers with readily accessible items worldwide (Zijm et al., 2018). They can actively manage orders, claims, and events while also selecting carriers and optimizing their load (Zijm et al., 2018). Analytics and software enable accurate analysis of the business and shipping methods. More people can conduct overseas business without incurring high costs that would cripple small organizations in the past.

Finally, it is crucial to determine the efficiency of global transportation and logistics as it does not involve goods only but facilitates human travel. Individuals move from one location to another through air, sea, or land travel (Zijm et al., 2018). They may use these services to conduct business or move because of education. In this way, these management systems accurately assess individuals and their habits, enabling good consumer analysis to develop products and services. Governments can use this information to determine the best infrastructure needed by people. These systems help develop correct notions that do not elicit doubt as they are based on computer calculations.

Globalization and cheaper travel enable people to conduct international business more effectively. Individuals develop better accounting mechanism that involves low costs and risks. These people also have various concerns, such as cash flow management in light of worldwide businesses. An effective logistics management system alleviates waiting time and is cost-effective, leading to high-quality goods procurement at low prices. Conclusively, global transportation and logistics management are ingrained in society and make business entities efficient.


Zijm, H., Klumpp, M., Regattieri, A., & Heragu, S. (2018). Operations, logistics and Supply Chain Management. Springer.

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