Transportation refers to moving goods and services from one point to another. The process begins with moving materials from the warehouse to ensure the end-users receive such products. In addition, transport ensures the delivery and distribution of these materials from the different focal points. The supply chain process involves all steps required to ensure the products reach the final consumers (Rodrigue, 2020). There is an easy flow of inventory from various regions and endpoints for consumption through transport.
Transport adds value by ensuring that the process is effective and efficient. In addition, quality products are offered through transportation, and there is a reduction of time wastage since few carriages are involved that offer consumers the right products at their convenience (Notteboom et al., 2022). Therefore, achieving the value-added supply chain requires various mechanisms to collaborate to improve the efficiency of services. In addition, the supply management process is improved through the reduced breakages of materials that are transported from different places.
In a manufacturing firm, when goods move from suppliers to the final consumers through the intermediaries (wholesalers and retailers), value is added to products through low input costs and better freight distribution strategies. The efficiency in the distribution process, which is brought about by transport, is a key feature of value addition in the supply chain management process. The structure implemented in transport, such as the localities, gateways, and various regions, allows for expansion and retention of value addition on the products and activities. The key questions about the relationship between transport and supply chain include:
- How does transport add value to the supply chain?
- What are the benefits of transport in the supply chain process?
- What are the challenges of transport in the supply chain?
References
Rodrigue, B. (2020). The geography of transport systems (5th edition). London: Routledge.
Notteboom, T, Pallis, A., Rodriguez, J. (2022). Port economics, management, and policy (1st edition). London: Routledge.