Page 183 - DMGT546_INTERNATIONAL_TRADE_PROCEDURE_AND_DOCUMENTATION

International Trade Procedures and Documentation

Notes
activities or at least play a significant role in the decisions. It also considers related questions
about the size and the number of facilities. These are important decisions that affect the
overall design of the supply chain.

Communication: Alongside the physical flow of materials is the associated flow of
information. This links all parts of the supply chain, passing information about products,
customer demand, materials to be moved, timing, stock levels, availability, problems,
costs, service levels and so on.

8.2 Characteristics and Relations

Following are the important basic characteristics or components or elements of any medium of
transportation:
1. The points of origin and destination.
2. The route through which transportation takes place.
3. The vehicle or the carriers on which the goods or passengers are transported.

4. The kind or type of power/energy used in the vehicle.
Transportation is one of the most visible elements of logistics operations. As consumers, we are
accustomed to seeing trucks and trains moving products or parked at a distribution facility.
While this experience provides a good visual understanding of transportation elements, it does
not allow the necessary depth of knowledge to understand transportation’s role in logistics
operations. This section establishes that foundation by reviewing functionality provided by
transportation and the underlying principles of transport operation. Transportation functionality
provides two major functions:
1. Product movement
2. Product storage

1. Product Movement: Whether the product is in the form of materials, components,
assemblies, work-in-process, or finished goods, transportation is necessary to move it to

Figure 8.4: Flowchart Depicting Product Movement

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