Why is transportation important to business?

Transport for companies It is essential that any company can purchase materials, take them to a production site and distribute its final products. Transportation connects businesses with suppliers and customers, creating an important framework that allows supply to meet personal and professional demands.

Why is transportation important to business?

Transport for companies It is essential that any company can purchase materials, take them to a production site and distribute its final products. Transportation connects businesses with suppliers and customers, creating an important framework that allows supply to meet personal and professional demands. Good transport links can encourage companies to get closer to each other and bring them closer to their supply chain and share their experience. Increasing the concentration of business economies helps improve performance and increases productivity.

Of all the processes in your supply chain, few have an impact on your business like your choice of transportation. Transportation methods ensure that deliveries to and from your facility flow smoothly and arrive at designated destinations on time. Transport has been a major contributor to the economy and a competitive force in business. It is the activity that physically connects the company with its supply chain partners, such as suppliers and customers, and has a great influence on customer satisfaction with the company.

Transportation is necessary in all production processes, from manufacturing to delivery to final consumers and returns. Only good coordination between each component would bring the benefits to the maximum. Providing a transportation service that is adequate and appropriate is the challenge faced by almost every company in the world. Ultimately, this is the only way to achieve lower total costs for a model where transportation can account for up to 60 percent of total operating costs, a significant portion of a company's supply chain costs.

Specifically, it seeks to discover the factors that explain the level of customer satisfaction in the transport of products. Coyle, Bradi and Langley (197) define transportation systems “as the physical link that connects a company's customers, raw material suppliers, the plant, the warehouses and the channel member (the nodes). Transportation in a supply chain refers to the movement of products from one location to another, which begins at the beginning of the supply chain as materials arrive at the warehouse and continues to the end user with the customer's order delivered to the door. Based on that, the topic under investigation is “the role of transport in achieving customer satisfaction in the private sectors.

In fact, it is very important that transportation be considered one of the three main components of supply chain management. Research has shown that transport alone accounts for about 46% of total physical distribution costs for manufacturing companies and 28% for reseller companies. The choice of mode of transport is a fundamental part of distribution management that must be carefully analyzed due to the impact on a company's operational efficiency. Because of the importance of transportation to the success of your business, it is essential to include this factor in your supply chain management strategy.

Recent risks facing the transportation industry include driver shortages, cyber attacks and deteriorating infrastructure, to name a few. Effective transportation management is often the competitive difference for a company and should be included in any supply chain management strategy. The decision on the choice of mode of transport is extremely complex due to the large volume of options available, together with the numerous methods of examining and evaluating each option. The last part analyzes customer service and customer satisfaction, the importance of customer satisfaction, levels of customer satisfaction, and the cost and relationship between transportation and customer services.

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