From the course: Understanding Logistics
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Choosing the right transportation method
From the course: Understanding Logistics
Choosing the right transportation method
- Transportation accounts for 60% or more of the total cost of logistics. This means that more money is spent on transportation than is spent on warehousing, distribution center expenses, inventory management, and order processing combined. So this is a pretty important part of understanding logistics. Transportation moves goods and materials through your supply chain from one organization to another right up to the final customer. The primary methods or modes of transportation are truck, rail, air, and water. And each of these has its own place in the effective movement of goods. Trucks, for example, are usually at both ends of the transportation journey. The first to pick up the goods and the last to drop them off. When you have a lot of stuff to move a long distance you look to railroads for the answer. Raw materials and low price products are good examples of things usually transported by rail and they're usually…
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